Sharjah24 - Reuters: - With the Federal Reserve's recent supersized interest rate decrease and indications that further cuts were imminent, gold hovered around record high levels on Friday and was expected to rise this week.
Spot gold rose 0.2% to $2,592.17 per ounce, as of 0309 GMT, up about 0.6% for the week so far.
Bullion rose to a record high of $2,599.92 on Wednesday after the Fed began easing monetary policy with a half-percentage-point rate cut. The Fed also projected a further half-point reduction by year-end, a full point next year, and an additional half-point in 2026.
U.S. gold futures edged up 0.1% to $2,617.30.
"Current trends are very positive for gold, and if these favourable market conditions continue, prices could reach between $2,600 and $2,800 over the next 12 months," said Kyle Rodda, a financial market analyst at Capital.com.
Lower U.S. interest rates and geopolitical uncertainty increase the appeal of holding bullion.
In the Middle East, Israeli warplanes carried out late on Thursday their most intense strikes on southern Lebanon in nearly a year of war, heightening the conflict between Israel and Lebanese armed group Hezbollah.
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