Gold's meteoric rise to $2,700

Gold (XAUUSD:CUR) recently surpassed $2,700/ounce in a historic first, amid a blistering rally in 2024 that has seen the precious metal soar +33.21% YTD.

According to Bank of America, the precious metal is testing all-time highs against global equities as investors seek hedges in gold before U.S. elections are set to end in early November.

The push towards the milestone gained momentum after the Federal Reserve on September 18 announced a half-point interest rate cut. It was the central bank's first instance of policy easing since 2020.

Here's a timeline of gold's meteoric rise:

Fed's Jumbo Rate Cut

On September 18, gold futures climbed to a record high before falling back in electronic trading after the Federal Reserve cut its key rate by 50 basis points, citing confidence that inflation will continue to fall and noting a slowing jobs market.

The rate cut is seen as bullish for gold since lower borrowing costs benefit the metal, which does not pay any interest.

Gold on the most-traded December contract initially climbed +0.7% to ~$2,610/oz following the Fed's announcement, but then swung into negative territory, down -0.3% to $2,583/oz.

First Time Above $2,600

On September 20, gold futures tallied another new record, closing above $2,600/oz for the first time, with anticipation for more rate cuts in the coming months is keeping forward momentum in gold.

Front-month Comex gold (XAUUSD:CUR) for September delivery ended +1.2% to settle at a new record $2,619.90/oz.

Middle East Escalation Fears

Gold futures jumped on October 1 following a major acceleration in Middle East hostilities, as Iran's missile launch at Israel stoked fears of a wider conflict.

Front-month Comex gold (XAUUSD:CUR) for October delivery closed +1.2% to $2,667.30/oz.

Strong U.S. Economic Data

Gold prices rose on October 10 after the latest U.S. economic data reinforced the likelihood that the Federal Reserve will cut interest rates next month, weakening the dollar.

Treasury Yields Boost

Gold futures climbed to new all-time highs on October 16, fuelled by weakness in U.S. Treasury yields and expected rate cuts by major central banks, with additional safe-haven support from geopolitical conflicts and Chinese economic worries.

U.S. Treasury yields also fell to their lowest in over a week, making gold more attractive as it tends to thrive in a low-interest rate environment.

First Time Above $2,700

Gold settled above $2,700/oz for the first time on October 18, extending a rally driven by uncertainty over the Middle East conflict and the tight U.S. presidential election race, as well as expectations of further central bank interest rate reductions, that have sparked a flight to safety among investors.

Front-month Comex gold (XAUUSD:CUR) for October delivery closed +0.8% to $2,713.70/oz.

Here are some exchange-traded funds of interest linked to gold and gold miners: (NYSEARCA:GLD), (IAU), (SGOL), (OUNZ), (BAR), (GDX), (GDXJ), (NUGT), (RING), and (DUST).