Gold broke above the $2,400 per ounce barrier and reached an all-time high on Friday, capping four weeks of advances. As Middle East tensions increased, investors flocked to safe-haven assets.
At 10:56 a.m. ET (1456 GMT), spot gold reached a record high of $2,419.79, rising 2.2% to $2,424.32 per ounce. The week saw a 4% increase in prices. In the meantime, U.S. gold futures saw a significant increase as well, rising 2.9% to $2,442.30.
“Gold price continues to trade to new historic record highs and tested $2400 in international and Rs72500 in the domestic market. This rally has been fuelled by a convergence of factors, including firmness in dollar index and bond yields, supported by central bank buying and anticipation of the U.S. Federal Reserve’s interest rate cut. Besides, geopolitical tensions and market specific dynamics have also contributed to the upward trajectory of gold prices. However, given the lingering geo-political tensions, gold may experience a short-term surge, yet its ability to maintain such levels remains uncertain. We are not advising for fresh purchases at this level,” stated Rahul Kalantri, VP-commodities at Mehta Equities Ltd.
“Gold prices experienced an uptick due to geopolitical uncertainties, increased central bank purchases, and heightened safe-haven demand. Consequently, emerging markets saw a late-week consolidation. Conversely, European markets demonstrated strong performance, buoyed by indications from the ECB suggesting a potential rate cut in the near term,” added Vinod Nair, Head of Research at Geojit Financial Services.
With the release of the March Consumer Price Index (CPI) data only a day earlier, Thursday’s U.S. Producer Price Index (PPI) showed a weaker increase than expected.
In the meantime, palladium gained by 2.7% to touch $1,075.00, while platinum experienced a 2.2% advance to $1,000.80.
