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Gold breaks above $2,700 to record high as geopolitical uncertainty heightens

Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020. AFP
  • Bullion hit an all-time high of $2,704.89 in early Asian trade, up from its previous record of $2,688.83 touched on Thursday
  • Markets have been on edge over the crisis in the Middle East as Israel battles Hamas in Gaza and, more recently, Hezbollah in southern Lebanon

Hong Kong, China – Gold prices hit a record high above $2,700 on Friday as traders piled into the safe-haven commodity at a time of heightened geopolitical uncertainty, including in the Middle East after Israel said it killed Hamas chief Yahya Sinwar.

Bullion hit an all-time high of $2,704.89 in early Asian trade, up from its previous record of $2,688.83 touched on Thursday.

Markets have been on edge over the crisis in the Middle East as Israel battles Hamas in Gaza and, more recently, Hezbollah in southern Lebanon, with worries about a region-wide war that could take in Iran.

Gold had already been rallying — piling on around 30 percent since the turn of the year — on the back of central banks’ moves to cut interest rates, which makes the commodity a more attractive asset to investors.

Concerns about the long-running war in Ukraine have added to the desire for safer investments.