Gold surged past the $2,400 per ounce mark, hitting an unprecedented peak on Friday, marking its fourth consecutive week of gains. Escalating tensions in the Middle East spurred investors to flock to safe-haven assets.

At 10:56 a.m. ET (1456 GMT), spot gold soared by 2.2 per cent to $2,424.32 per ounce, achieving a record high of $2,419.79. The week saw prices surge by 4 per cent. Meanwhile, U.S. gold futures also saw a notable rise, climbing 2.9 per cent to $2,442.30.

Also read: Gold prices hit all-time high on strong US inflation figures, Fed rate cut buzz. Silver price also climbs a new peak

Drawing inspiration from the upward movement of gold, platinum surpassed the significant psychological threshold of $1,000 per ounce, reaching its highest point in almost four months.

The White House emphasized the genuine and substantial threat of a potential attack by Iran on Israel, without disclosing specific timing details. It reiterated the unwavering commitment of the United States to defend Israel, underscoring the seriousness with which it approaches its obligations in this regard.

“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,” said Rahul Kalantri, VP-commodities, Mehta Equities Ltd.

Gold’s recent surge defied expectations, as traders tempered their anticipation for an imminent interest rate cut from the Federal Reserve.

Also read: Gold price rise: Baffled by the increase, Chris Wood in Green and Fear explains likely reasons behind it

“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,” said Vinod Nair, Head of Research at Geojit Financial Services.

Thursday’s U.S. Producer Price Index (PPI) showed a milder increase than anticipated, following hot March Consumer Price Index (CPI) data released just a day prior.

Silver surged by 4 per cent to reach $29.60 per ounce, marking its highest point since early 2021. Meanwhile, platinum saw a 2.2 per cent increase, reaching $1,000.80, and palladium strengthened by 2.7 per cent to hit $1,075.00.

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