Gold rates reaches historic high after Raisi death
Date
5/27/2024 8:57:44 AM
(MENAFN) The price of Gold soared to unprecedented levels in trading on Monday, driven by mounting concerns over heightened geopolitical uncertainty in the Middle East following the tragic demise of Iranian President Ebrahim Raisi. Gold, renowned as a traditional "safe haven" investment during times of geopolitical turmoil, witnessed a remarkable rally amid escalating tensions in the region.
Raisi, the esteemed leader of the Islamic Republic, met an untimely end in a helicopter crash on May 19 while visiting the northwestern East Azerbaijan province of Iran. The head of state had traveled to the border region to participate in the inauguration of a dam alongside Azerbaijani President Ilham Aliyev.
During Monday's trading session, spot gold prices surged to an astounding USD2,449.89 per ounce before slightly retracing gains. The remarkable uptick in gold prices mirrored a broader rally observed across various metal markets. Analysts on Wall Street are now forecasting a potential surge in the precious metal's price, with projections indicating a possible breach of the USD2,500-per-ounce threshold in the near future.
The surge in gold prices follows a previous rally observed in April, spurred by escalating fears of a potential conflict between Israel and Iran. With the unexpected demise of President Raisi further exacerbating geopolitical tensions in the region, market analysts anticipate additional upward pressure on gold prices.
Further contributing to the prevailing geopolitical volatility, a China-bound oil tanker fell victim to a Houthi missile attack in the Red Sea over the weekend, intensifying concerns surrounding regional stability.
According to Dick Poon, general manager at Heraeus Metals Hong Kong, the geopolitical landscape is becoming increasingly complex, fueling uncertainty in global markets. Additionally, robust buying activity from China has played a significant role in supporting gold prices, alongside analyst expectations of potential interest rate cuts by the United States Federal Reserve, further bolstering the precious metal's appeal as a hedge against economic uncertainty.
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