Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Spot Gold trades near record high on Middle East tensions

Having registered a fresh all-time high of $2,431.29 per troy ounce last Friday, Spot Gold remained supported by safe haven buying as investors closely watched developments in the Middle East.

“Gold remains in vogue as a financial asset given the combination of geopolitical risks and the prospects of Fed interest rate easing in the second half of the year,” Tim Waterer, chief market analyst at KCM Trade, was quoted as saying by Reuters.

“In many respects, gold is taking on the appearance of being as ‘asset for all occasions’ given its ability to rally under varying market dynamics in 2024.”

Despite that the most recent US CPI inflation data prompted investors to pare bets the Federal Reserve will begin reducing interest rates in June, about two rate cuts are still expected this year.

Lower interest rates reduce the opportunity cost of holding Gold, which pays no interest.

As of 9:13 GMT on Monday Spot Gold was edging up 0.22% to trade at $2,349.39 per troy ounce.

Gold Futures for delivery in June were edging down 0.37% on the day to trade at $2,365.35 per troy ounce.

Elsewhere, Silver Futures for delivery in May were up 0.02% to trade at $28.335 per troy ounce.

“We expect gold to trade near $2,500/oz and silver to move above $31/oz by the end of 2024,” analysts at ANZ Research said in a client note.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was edging down 0.11% to 105.897 on Monday.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News