Gold prices hit record amid Middle East tensions

Gold prices continued their record-breaking rally on Monday, driven by speculative buying and ongoing tensions in the Middle East, Reuters reported.

Spot gold rose 0.3 per cent to $2,335.73 per ounce, hitting a peak of $2,353.79 earlier in the day at 06:46 GMT. US gold futures also climbed 0.4 per cent to $2,354.50.

Financial market analyst Kyle Rodda noted a surge in momentum-driven trading and optimism about gold’s prospects at current levels.

Geopolitical tensions in the Middle East further supported the precious metal’s rise.

Factors such as central bank purchases, safe-haven demand, and momentum-driven fund inflows have contributed to gold’s 12 per cent increase this year.

Despite strong US job growth data in March, potential Federal Reserve interest rate cuts may be delayed.

Analyst Matt Simpson warned of potential bearish volatility at current highs, while UBS raised its year-end gold target to $2,250 per ounce due to increased demand and expectations of rising ETF holdings.

In India, gold demand remained subdued due to high prices, while China saw steady premiums.

Spot silver rose 1.1 per cent to $27.77 per ounce, platinum increased 0.1 per cent to $927.78, and palladium gained 0.2 per cent to $1,001.76.