Gold prices surge due to Middle East political tensions
Date
10/24/2024 5:07:56 AM
(MENAFN) Gold edged up today as safe-haven demand remained strong despite the pressure of a rising dollar, while palladium surged to its highest level in over a month. Spot gold increased by 0.3 percent to USD2,725.51 an ounce by 01:43 GMT. On Wednesday, gold prices had reached a record high of USD2,758.37 as demand spiked due to rising tensions surrounding the US presidential election and the ongoing conflict in the Middle East. US gold futures also climbed by 0.3 percent, reaching USD2,738.50.
However, the dollar neared its highest level in three months, which has limited the potential for further gains in gold prices. This strength in the dollar makes it harder for gold to continue its upward momentum. Meanwhile, the US presidential race is intensifying, with less than two weeks left before the November 5 election between Republican candidate Donald Trump and Democratic candidate Kamala Harris.
In the backdrop of geopolitical tensions, Israel launched airstrikes on Beirut’s southern suburbs, and Lebanon's Hezbollah responded by firing precision-guided missiles at Israeli targets for the first time. The escalation in the region has added to global concerns, driving up the demand for precious metals like gold as investors seek safer assets amidst the uncertainty.
Among other precious metals, spot silver held steady at USD33.84 an ounce, while palladium soared by 4 percent to USD1,100.50 an ounce, its highest since mid-September. Bloomberg reported that Washington has asked its G7 allies to consider sanctions on Russian palladium and titanium, likely contributing to the rise in palladium prices. Platinum also rose by 1 percent, reaching USD1,025.85 an ounce.
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