Precious metals stocks were bid higher in early trade as the spot gold price continued to hover around its all-time high at $2,119 (up $5.50), driven by hopes of a US interest rate cut this summer after disappointing economic data.
The surge, reaching new peaks after weeks of steady gains, reflects investor optimism for the Federal Reserve's potential rate reduction in June.
This optimism, along with ongoing geopolitical and economic uncertainties, has bolstered gold's appeal as a safe-haven asset.
Despite traditional challenges in high-interest-rate environments, falling Treasury yields and a weaker dollar have made gold more attractive.
Investors, eyeing a moderate economic outlook and potential rate cuts, are increasingly investing in the yellow metal, expecting its price to remain robust amidst political and economic turmoil worldwide.
In early deals, gold digger Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Fresnillo PLC (LSE:FRES), the Mexico-focused silver miner, were up 1.5% and 1.8% respectively.