Gold prices hit new record high amid geopolitical tensions

HONG KONG

Gold prices hit a record high above $2,700 on Oct. 18 as traders piled into the safe-haven commodity at a time of heightened geopolitical uncertainty, including in the Middle East after Israel said it killed Hamas chief Yahya Sinwar.

Bullion hit an all-time high of $2,704.89 in early Asian trade, up from its previous record of $2,688.83 touched on Oct. 17

Markets have been on edge over the crisis in the Middle East as Israel battles Hamas in Gaza and, more recently, Hezbollah in southern Lebanon, with worries about a region-wide war that could take in Iran.

Gold had already been rallying, piling on around 30 percent since the turn of the year, on the back of central banks' moves to cut interest rates, which makes the commodity a more attractive asset to investors.

Concerns about the long-running war in Ukraine have added to the desire for safer investments.

Poor growth data from China also weighed on the market sentiment.

Meanwhile, Japanese inflation slowed in September with prices up 2.4 percent on-year, not including volatile fresh food.

The core Consumer Price Index eased from 2.8 percent in August as the pace of increase in electricity and gas prices relented, the Internal Affairs Ministry said on Oct. 18.

Despite the slowdown, the rate remained above the Bank of Japan's 2 percent target, set over a decade ago as part of efforts to boost the stagnant economy.