Gold Price Finally Rises. Why It’s Finally Acting Like a Haven.

The price of gold was rising early Tuesday as oil prices continued to rise.

Continuous gold futures were up by 0.5% to $5,029.10 per ounce. Elsewhere, the S&P 500 was up 0.8% while Brent crude futures rose to $101.83 a barrel, up 1.1%.

Gold’s positive momentum may be linked to changing expectations around the Federal Reserve’s forward path on interest rates. Futures markets are “now pricing in 26 basis points of cuts by the December meeting, up 2.4 basis points on the previous day,” said Deutsche Bank strategist Jim Reid.

The central bank’s monetary policy committee starts it’s two-day meeting today and is widely expected to keep rates on hold.

The price of gold, which is a nonyielding asset, and interest rates typically move in opposite directions.

Taking a step back, though, bullion’s gains could mark a return to form as a haven asset. Since the start of hostilities in Iran, the price of gold has fallen by 6.1%, according to FactSet data. As such, Tuesday’s price action may point to gold re-establishing itself as a safe harbor for investors.