Gold prices surged to a new all-time high on Friday, surpassing $2,600 an ounce, continuing its record-breaking trend.

US gold futures for December delivery reached $2,611.60 per ounce, marking a 1% daily increase and a weekly gain of over 2% after two weeks of losses.

Spot gold also hit a high of $2,583.36, showing a 0.8% rise for the day and a 2.5% gain for the week.

The rally in gold prices is great part driven by expectations of a US Federal Reserve interest rate cut, the first in over four years, which may be announced next week.

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Analysts suggest the Fed might opt for a 25- or 50-basis point cut due to easing inflation, which has slowed to 2.5% annually, down from 9.1% in June 2022.

Gold's inverse relationship with the US dollar, which has weakened by 4% since June, also contributed to the rise.

Gold futures are up 25% in 2024, making it one of the year’s top-performing commodities, in contrast to oil prices, which have fallen by over 6%.

Read more: Gold price hits all time high; USD, Treasury bonds' yields diminish