After pulling back from the new record highs set earlier this week, gold futures for February delivery (GCG24) are pushing higher again in early trading today. As investors adjust the odds for Fed rate cuts next year, the yellow metal has been gaining momentum due to cooling bond yields and a softer U.S. dollar, coupled with ongoing geopolitical tensions and aggressive purchases of gold by central banks.
Physical gold is a safe haven asset, and is viewed as a store of value as well as a hedge against inflation. Historically, the precious metal has thrived in periods of economic turmoil - which means adding exposure can provide your portfolio with diversification, lowering overall risk.
