Gold is currently trading near an all-time high of over $2,500 per ounce, driven by rising geopolitical tensions and a weaker US dollar. The ongoing conflicts in Ukraine, Israel, and the Middle East have increased demand for gold as a safe haven asset. Traders are also confident that US officials will lower interest rates, making non-interest-bearing assets like gold more attractive. Defence shares in European companies have dropped following reports that Germany will not approve more military aid to Ukraine. Despite this, the UK property market is seeing a boost in activity after the Bank of England cut interest rates at the beginning of August. This rate cut has revitalized the sector, with a 19% increase in potential buyers contacting estate agents about homes for sale. Rightmove has raised its 2024 forecast for asking prices to rise by 1% this year. In the financial markets, the US dollar has weakened to a seven-month low, as traders anticipate rate cuts from the Federal Reserve. Additionally, the energy price cap for customers across Great Britain is expected to rise slightly in January 2025 due to the rebound in wholesale prices following the Russia-Ukraine conflict and global supply disruptions.
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