Global markets witnessed a historic rise on Friday, with the price of goldreaching an unprecedented high amid rising geopolitical tensions in the Middle East and economic concerns around Chinawhich fueled demand for safe assets.
Spot gold experiences an increase of 0.9%, reaching $2,395.66 per ounce, marking a milestone with an all-time high of $2,400.35. This upward trend has marked the fourth consecutive week of gainswith prices that have increased almost 3% over the course of the week. Meanwhile, US gold futures also rose 1.8% to $2,414.30.
Analysts note that this bullish trend could persist due to continued purchases by central banks and growth in demand for safe-haven assets, driven by growing anxiety among investors due to rising geopolitical tensions.
Ricardo Evangelistasenior analyst at ActivTrades, highlighted that “concern about the Chinese economy fuels fears about the growth of the global economy and this also aggravates the market sentiment of seeking safe haven assets.”
Gold: what data the market analyzes
Tensions in the region intensified further with statements from Iran, which warned the United States of a possible escalation after the Israeli attack on its embassy in Syria, seeking to avoid a more serious situation.
In a bid to stabilize the market, Vietnam’s central bank announced plans to increase the supply of gold bullion, while China’s central bank continued to add gold to its reserves throughout the month of March.
Investors also kept an eye on China’s economic data, which showed a contraction in exports and imports in March, highlighting the challenges policymakers face in their efforts to boost a Economic recovery in the midst of a slowdown.
On another front, the president of the Boston Fed, Susan Collins, In an interview with Reuters, he expressed his expectation of making a couple of interest rate cuts throughout the year.
Besides of goldother precious metals also posted significant gains, with spot silver rising 2% to $29.04 per ounce, reaching levels not seen since early 2021. Platinum also rose 1.7% to $996.36, while palladium rose 0.5%., reaching $1,051.50 per ounce. All three metals are on track to post weekly gains.
Source: Ambito
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