The price of gold futures rose to a historic high on Thursday. The day before, the Federal Reserve launched a monetary easing cycle and cut interest rates by 50 basis points. This move is seen as bullish for gold because lower borrowing costs are advantageous for gold, which doesn't pay any interest.

Samer Hasn of XS.com says that with falling interest rates, gold continues to be a safe haven for funds, with an even greater appeal. He also states that "geopolitical tensions returning to the forefront may keep gold shining and could soon push it to more historic highs."

Alex Ebkarian of Allegiance Gold states, "If you combine geopolitical risks with current deficits, low yield environment, and a weakening dollar, all these factors would lead to an increase in the price of gold." He also adds that silver would benefit from the rising environment for gold.

UBS Group analysts have set a mid-2025 target price for gold at $2,700 per ounce, while also expecting a faster pace of demand for gold ETFs in the coming months.

Gold for September delivery on the New York Commodities Exchange rose by 0.6% to $2,588.00 per ounce, reaching a new historic high, while silver for September delivery rose by 2.5% to $31.094 per ounce, still down 3.4% from its high of $32.205 reached on May 20th.

Bespoke's Daily Chartbook states that after the Federal Reserve's interest rate cut, "only in 1998 did gold experience a significant decline in the following year, but even then, it saw a surge near the one-year mark coinciding with the beginning of the internet bubble."