Due to a cocktail of factors, the gold price hit a record high on Tuesday.

The spot gold price rose 0.2% to $2,633.25 per ounce at 11:00 GMT, after reaching a record high of $2,639.95 earlier in the day. US gold futures rose 0.2% to $2,657.90. The bullion hit several record highs after the US Federal Reserve cut interest rates last week by 50 basis points, a steeper drop than usual. Gold jumped by 27% in 2024 as protracted conflicts in the Middle East increased the demand for safe haven assets. According to Giovanni Staunovo, an analyst at UBS, “the possibility of another 50 bps drop at the next Fed meeting and the actions taken by China are driving up gold prices. There is still a risk of a price correction, but it could be low as investors who missed the rise will use it as an opportunity to increase their exposure.”