The world’s most recognizable precious metal just became even more precious, thanks to the Fed. (No, we did not mistype.) After the Federal Reserve cut interest rates for the first time since 2020, gold hit a record last week — with prices climbing past $2,670. And this week, just shy of its last record, the shiny commodity is inching closer to new highs.

• Investors have turned to gold as a safe haven to hedge against a weakening dollar, which has been losing value due to rate cuts and softer economic data.
• With the labor market struggling, analysts are also buying on fears that the Fed might cut rates aggressively — potentially inducing an inflation comeback.

Gold’s big year: The SPDR Gold Trust ($GLD), the largest gold-backed ETF, is up 29% YTD — outpacing the S&P 500’s 21% YTD showing. Despite uncertainty over future rate cuts, investment banks and analysts are betting that there’s more to come. Goldman Sachs and UBS expect the yellow metal to pass $2.7K next year, while Citigroup predicts it could break $3K per ounce. Some analysts think gold could chill out a little after its meteoric run, but with the Fed in focus, the bulls seem to have the upper hand.