The global market price of gold surged past $2,410 per ounce on Friday, reaching a new record high and climbing approximately 3.4% over the course of the week.
This upward trend in the commodity market was fueled by robust safe-haven demand, which has now overshadowed concerns about potential delays in interest rate cuts by the US Federal Reserve.
Traders intensified their purchases of bullion following reports indicating that Iran was gearing up for a possible attack on Israel. Such geopolitical tensions could potentially spark a broader regional conflict and exacerbate existing inflationary pressures.
According to Moody’s, the US Federal Reserve is unlikely to raise interest rates in light of recent consumer price index data and a strong job market.
Gold continued to benefit from robust physical demand in China, where investors sought refuge amid volatile local currency conditions and an economy in need of additional stimulus.