WASHINGTON (dpa-AFX) - Gold prices rose to record highs Friday morning amid rising bets the Federal Reserve will announce more interest rate cuts in the coming months.
Escalating tensions in the Middle East contribute as well the yellow metal's rise. According to reports, Israel has launched major strikes on Lebanon. Israel said warplanes struck hundreds of multiple-rocket-launcher barrel.
Meanwhile, Bulgarian authorities have stated that a Sofia-based company had nothing to do with the delivery of exploding communications devices to Lebanese miltant group Hezbollah, according to a report from Agence Frane-Presse.
Earlier in the week, scores of pager and walkie-talkies detonated across Lebanon, killing several people and injuring almost 3,000.
A stronger dollar is limiting the safe-have metal's upside. The dollar index is up 0.25 or about 0.23% at 100.86.
Gold prices moved past $2,600 an ounce for the first time. Gold futures for December surged to $2,640.45 an ounce, gaining more than 1%.
October Gold futures are trading at $2,613.60 an ounce, gaining $22.70, or about 0.88%.
Silver futures for December are up $0.167 or 0.53% at $31.590 an ounce, while Copper futures for December are gaining $0.0040 at $4.3510 per pound.
The Fed reduced interest rates by 50 basis points on Wednesday. The central bank officials also forecast continued rate cuts over the coming months and into next year, generating optimism the central bank will be able to engineer a soft landing for the economy.
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