HONG KONG - Gold broke above US$2,300 for the first time yesterday as it continued to surge on the back of expectations that US interest rates will come down this year amid high geopolitical tensions.

The precious metal has chalked up multiple records over recent weeks as the US Federal Reserve indicates it is about to begin easing monetary policy -- which makes it more attractive to investors.

Its popularity as a safe haven in times of turmoil has also provided plenty of support, with traders fretting over the Middle East crisis and the ongoing war in Ukraine.

Yesterday, bullion touched US$2,304.96 per ounce, according to Bloomberg News, after Fed boss Jerome Powell said it would likely be appropriate to cut borrowing costs “at some point this year”.

Eyes are now on the release of US jobs’ figures due at the end of the week, with a weak reading likely to give the Fed room to cut rates sooner rather than later. 

- Nampa/AFP