At first conflict in the Middle East, the price of the December contract for gold on the CME exchange increased by 6.16% or $113.6 per ounce and at its peak on October 18 amounted to $1958.8 per ounce (+1.2%). The closing price on October 6 was $1,845.2 per ounce. As of 14:00 Moscow time, gold futures for December delivery added 1.15% to $1,958 per ounce.
Gold demand has risen due to a combination of a geopolitical risk premium linked to fears of protracted military conflict in the Middle East, momentum following a breakout above key technical levels and risks of stagflation in the economy due to high oil prices. told Kelvin Wong, senior market analyst for the Asia-Pacific region at broker OANDA.
Rising demand for safe-haven assets amid rising geopolitical tensions in the Middle East remains the main catalyst for gold prices, said IG market strategist Yip Jun Rong. According to him, the risks of further escalation of the conflict could support the price of gold, which is considered a hedge against political and financial uncertainty.
Gold prices also received a boost after data showed the economy of China, a major gold buyer, grew above economists’ expectations in the third quarter. China’s GDP grew 4.9% year-on-year in the third quarter.
According to experts at ANZ Banking Group, any further escalation of the conflict in the Middle East should lead to the fact that purchases of defensive assets will remain at a high level. “This comes amid strong demand in the physical market from both central banks and gold consumers in both India and China,” ANZ said.
Analysts at Commerzbank predict gold price at $1,900 per ounce at the end of December and $2,100 per ounce at the end of 2024. Unless there is further escalation, further upside potential for gold prices is likely to remain limited, experts say.
Kitco Metals senior analyst Jim Wyckoff does not rule out continued growth in the price of the precious metal. A serious geopolitical situation is emerging in the Middle East; in the next few weeks, gold prices will remain at a high level, while reaching $2,000 per ounce cannot be ruled out. reported He.
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2023-10-18 11:54:18
