Spot gold was up 0.7 percent at $2,463.45 an ounce, as of 0915 GMT, just $22 shy of the record peak of $2,483.60 scaled on July 17. The yellow metal is on track for its biggest weekly gain since April 5.
US gold futures climbed 1.1 percent to $2,507.80.
“Gold prices are buoyed by rising expectations of rate cuts, driven by recent weak U.S. economic data… additionally, fears of a retaliatory strike by Iran and its proxies in the Middle East are bolstering gold’s appeal as a safe haven,” Zain Vawda, market analyst at MarketPulse by OANDA told news agency Reuters.
The bullion is considered a hedge against geopolitical tensions and economic risks and lower rates reduce the opportunity cost of holding the asset.