Gold prices set another all-time high on Tuesday, gaining a boost from a weaker US dollar and a flare-up in geopolitical tensions.
Prices rallied as high as $2,277 an ounce on Tuesday afternoon, compared with around $2,253 an ounce in late deals on Monday.
The US dollar fell against other major currencies on Tuesday, giving up the previous day’s gains, and putting upward pressure on dollar-denominated assets like gold.
Geopolitics also came to the fore this week after what appeared to be an Israeli strike against an Iranian consulate in Syria on Monday which killed several people including two generals. The latest attacks may be seen as increasing the risks of a wider confrontation beyond the immediate war between Hamas and Israel in Gaza, driving investment flows toward perceived safe havens.
The latest developments have pushed gold prices to new all-time highs, with the markets also continuing to focus on the prospects of looser monetary policy by central banks in the coming months.
Looking ahead, Wednesday will see the release of monthly US ISM Services PMI figures for March, providing a pointer on the health of the US economy. US Fed chair Jerome Powell is also expected to make a speech on Wednesday which may shed some light on the future path for interest rates in the coming months.
Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
Read our Editorial Guidelines here.
