Gold prices continue historic highs amid market uncertainty
Date
4/22/2024 3:35:14 AM
(MENAFN) Gold prices have continued to maintain their historic record levels, hovering around USD2,400 per ounce, amidst a backdrop of widespread market uncertainty and escalating geopolitical tensions. The precious metal has witnessed significant momentum, driven by growing concerns impacting global markets.
Last week marked the fifth consecutive week of gains for gold prices, fueled by a combination of geopolitical risks and economic uncertainties, particularly related to China, which have spurred strong demand for safe-haven assets. Heightened fears of potential retaliatory actions between Iran and Israel have further bolstered this demand for safe-haven investments.
The spot price of gold experienced a notable increase of 0.7 percent to reach USD2,395.15 per ounce, with earlier sessions seeing a peak of USD2,417.59. Over the course of the week, prices surged by 2.2 percent. Similarly, US gold futures saw a 0.7 percent uptick, settling at USD2,413.8.
Renowned economist David Rosenberg, president of Rosenberg Research, has expressed optimism regarding the future trajectory of gold prices, suggesting that the current momentum could propel the precious metal to reach levels as high as USD3,000 per ounce. Rosenberg highlighted the impressive performance of gold in recent times, noting its outperformance compared to Bitcoin and major currencies. He emphasized that gold has not only surpassed these assets but has also overcome typical macroeconomic headwinds that often suppress its value.
The sustained rally in gold prices underscores investors' growing appetite for safe-haven assets amid a volatile and uncertain global economic environment. As geopolitical tensions persist and market volatility remains elevated, gold continues to serve as a reliable store of value and a hedge against potential risks. The positive outlook for gold, as suggested by experts like Rosenberg, reflects the enduring appeal of the precious metal as a strategic component of diversified investment portfolios.
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