Gold Soars on Safe-Haven Bid Amidst Middle East Tensions

16 Apr 2024 , 10:00 AM

Tuesday saw a slight increase in gold prices, which were still close to record highs due to investor aversion to the safe-haven commodity due to growing concerns over rising Middle East tensions.

Spot gold was up 0.1% at $2,383.37 an ounce. On Friday, the price of gold reached a record high of 2,431.29.

The ounce of U.S. gold futures increased by 0.7% to $2,400.00.

As world pressure for moderation increased over concerns of a Middle East conflict escalation, Israelis awaited word on Prime Minister Benjamin Netanyahu's response to Iran's first-ever direct attack on their nation.

In March, U.S. retail sales exceeded forecasts due to a spike in online retailer receipts, providing fresh proof that the economy was doing well at the end of the first quarter.

Mary Daly, president of the San Francisco Federal Reserve Bank, stated that as the labour market, economy, and inflation are all robust and above the Federal Reserve's 2% target, there is no pressing need to lower interest rates.

Having non-yielding gold becomes less appealing when interest rates rise.

Although spillovers from persistently high inflation and tight monetary policy could offer additional dangers to an anticipated "soft landing" around the world, U.S. economic growth is emerging as a vital pillar supporting a sustained global recovery.

As part of its attempts to boost the amount of precious metal available for purchase, the State Bank of Vietnam will resume holding gold bar auctions after an 11-year break.

Spot silver decreased by 0.1% to $28.86 an ounce, palladium decreased by 0.8% to $1,027.06, while platinum increased by 0.8% to $969.70.

For feedback and suggestions, write to us at [e-mail]