The price of gold has hit a new all-time high as investors continue to drive a rally of the typically “safe haven” precious metal.
The spot price of gold hit highs of about 2,365 US dollars (£1,864) per ounce on Tuesday morning, surpassing previous record highs touched earlier this month.
It means the value has jumped by about 13% since the start of the year.
The rally comes as geopolitical tensions have heightened, economic conditions remain uncertain, and financial markets have gone through a period of volatility.
It also reflects strong demand from central banks, namely in China, Poland and Singapore, and Asian investors who have been buying up gold in recent months, according to investment experts at UBS.
The bank said gold has rallied “faster and more forcefully” than its already high expectations, and that buyers are set to continue accumulating the metal in the months ahead.
Ed Monk, associate director at Fidelity International, said surging gold prices are “underpinned by expectations of lower interest rates, geopolitical concerns and growing caution” around stock markets.
Interest rates coming down can prompt investors and savers to look for more attractive places to put their cash, like precious metals.
“In general, it (gold) performs well in times of political or economic uncertainty that cause investors to seek safe-haven assets”, Mr Monk said.
“In addition, events causing a drop in the buying power of paper assets – quantitative easing or excessive inflation – drive up the underlying value of gold and tend to do the same to its price.”
That happens because the supply of gold is limited, so rising levels of demand push up its price.
Gold remains an asset that investors look to as a “safe-haven option”, Mr Monk added, with conflict in the Middle East and the ongoing Russian war in Ukraine further fuelling demand.
Gold miner Fresnillo was at the top of the FTSE 100 on Tuesday with gains of more than 4% amid the surge in gold prices.