Gold Prices Surge to $2,385.18 Per Ounce Amid Rising Tensions in Middle East

Investing.com – Gold prices (Spot) are now rising to levels of $2,385.18 per ounce, an increase of 1.1% at the time of writing.

Gold prices (futures contracts) also rose 1.7% to $2,400.6 an ounce, and this came at a time when the US dollar maintained its rise and now registers 106.005, an increase of 0.16% the against a basket of foreign currencies.

The reason for the increase now…the increase of the war

The acceleration of gold’s rise came as a result of the news that it had prepared its response to the attack from Iran. This news came despite the fact that Iran announced that its strike on Israel and its air attack with drones had ended and that they did not intend to continue the strike against Israel.

Israel’s war cabinet decided to respond “clearly and forcefully” to Iran’s missile and drone attack on Saturday, the Times of Israel reported Monday, citing local Channel 12.

The report said that Defense Minister Yoav Galant and IDF Chief of Staff Herzi Halevy believe that Israel should act in response to the attack, but not to harm the coalition under led by the US, which played a vital role in helping Israel defend itself against Iranian aggression. .

Israel intends to convey a message that “it will not allow an attack of this magnitude to go unanswered.” The media said the response would be in coordination with the United States.

Iran said through official sources that if there is any Israeli attack, its response will be immediate.

Is the gold collection real?

Capital Economics referred to the current situation, as this is the highest level for 2024. Carolyn Payne, chief commodity economist at Capital Economics, said in a report published on Friday that although she is optimistic about gold for the this year, that the price has gone much higher than expected, and she expects that prices will fall back to earth before the end of the year.

“The 16.5% rise in the price of gold since the start of the year appears increasingly inconsistent with interest rate expectations,” Bain said in his latest note. “Of course, the strong US earnings report Last Friday and the CPI report in March, which could suggest that interest rates could be higher for a longer time, at the same time as the price of gold rose, while the output rose and the US dollar too.”

Bain said they are keeping their year-end target price for gold at $2,100 an ounce. Meanwhile, he sees prices ending the year at around $26 an ounce.

Although gold has fallen from Friday’s high, the precious metal continues to make strong gains in the high. The June stock was trading at $2,394.10 an ounce, up nearly 1% on the day.

While geopolitical uncertainty surrounding the growing turmoil in the Middle East has created safe-haven demand for gold in recent weeks, it is not a sustainable trend, Payne said.

“Other safe havens, such as the Swiss franc, have not performed as strongly, and there have been outflows from gold ETFs,” she said.

Blaine said demand for corporate bulls in China was the biggest driver of gold this year, which helped the precious metal headlines from changing monetary policy expectations.

Ben expected demand for gold to weaken at the end of the year in China. “It is not surprising that Chinese investors are interested in gold as potential investment opportunities in China have diminished as real estate valuations decline and stock prices fall there over the past two years,” she said. “However, we expect that the Chinese frenzy around gold will eventually peter out, and that traditional price drivers will take over later in the year. This opinion is based in part on what we expect some Chinese stocks to recover in the coming years.”

–

For less than 37.5 rubles..Use coupon sapro2 and get an additional discount when you subscribe to InvestingPro or InvestingPro + for one or two years. Don’t miss your chance to join thousands of investors and traders on the InvestingPro platform.

To subscribe Click here And use sapro2

To learn more about it InvestingPro tool from here

If you encounter any problem using the coupon, you can contact support immediately from here