Spot gold prices hit a record high on Friday as a weak dollar, expectations of more U.S. interest rate cuts and tensions in the Middle East more than offset muted physical demand in Asia.

Spot gold was up 1.2% at $2,617.60 per ounce after hitting a record high of $2,617.89. U.S. gold futures rose 1.1% to $2,643.

Non-yielding gold is up 27% so far this year, heading for its biggest annual rise since 2010. It got the latest boost from the start of the Federal Reserve’s easing cycle on Wednesday.

“We expect further dollar depreciation, as the Fed catches up with other central banks who started their cutting cycles earlier. That should be gold price positive,” said WisdomTree commodity strategist Nitesh Shah.

Gold could hit $3,000 per ounce in a year amid geopolitical risks and investors hedging against a slowing economy, he added.

However, from a technical point of view, gold’s Relative Strength Index moved into “overbought” territory on Friday, at 70.9.

“Over the last few weeks gold’s inverse relationship with the US dollar, and indeed US treasury yields, has been very much reinstated,” said independent analyst Ross Norman.

“The path of least resistance for gold looks to be to continue higher and, even though it looks well overbought and much above fair value, the momentum trades are behind it and price strength looks in order,” Norman said.

Meanwhile, demand from the physical sector in Asia remains light and gold is trading there at a discount to the London price. Top consumer China did not import any gold from a major trading hub Switzerland in August, for the first time in 3-1/2 years.

In other metals, silver gained 2.0% to $31.39, platinum rose 0.5% to $993.85 and palladium was steady at $1,080.75.

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