Global gold prices surge amid escalating hostilities in the Middle East
Kyiv • UNN
The price of gold rose as capital shifted to safe-haven assets amid the intensifying military conflict in the Persian Gulf. The spot price increased by 0.8%, settling above $5100 per ounce.
On Thursday, the price of gold showed a significant increase as investors began to massively transfer capital into safe-haven assets due to the intensification of the military conflict in the Persian Gulf. This was reported by Reuters, writes UNN.
Details
An additional impetus for the rise in the price of the precious metal was the weakening of the US dollar, which made bullion more attractive to international buyers. The spot price rose by 0.8%, confidently consolidating above the psychological mark of $5,100 per ounce, reflecting the high level of anxiety in global financial markets.
Geopolitical risks as the main factor in price increases
The escalation of the situation around Iran and the United States forces major market players to seek a "safe haven," which gold traditionally is. April futures in the United States showed an even more dynamic growth, rising by 1% and reaching $5,186.40. Analysts note that the current rally is due not only to the fear of a major war, but also to a certain normalization of financial conditions after the long dominance of the dollar.
Gold benefits from the geopolitical risks we have seen escalate in recent days. So prices have risen to some extent due to the normalization of financial conditions and the US dollar retreating from its highs.