Gold Soars to Record Highs as Investors Seek Safe Havens

12 Apr 2024 , 10:41 AM

Strong economic statistics did not lessen the appeal of bullion, as gold prices rose to a record high on Friday as geopolitical worries continued to drive demand for the safe-haven metal.

Spot gold was up 0.6% at $2,386.38 an ounce. Earlier in the session, the price of gold reached a record high of 2,389.29.

The ounce of U.S. gold futures increased 1.3% to $2,403.90.

The number of Federal Reserve officials who believe that there is no need to quickly lower interest rates is increasing, as concerns about the still-too-hot-for-comfort U.S. inflation rate rise.

As one solid economic report after another indicates that if the U.S. central bank lowers borrowing costs too soon, expectations for how much policy easing the Federal Reserve can do are fast declining.

Having non-yielding gold becomes less appealing when interest rates rise.

The European Central Bank maintained record-high interest rates but gave notice that it might begin lowering them as early as June.

Israel declared it was getting ready to “meet all its security needs” amid a region on edge over an Iranian threat to strike Israel, while Russia, Germany, and the United Kingdom urged nations in the Middle East to exercise restraint.

The South African business said that Sibanye Stillwater, a diverse miner, may restructure its South African gold operations, potentially eliminating 4,022 jobs. The unions have vowed to oppose the layoffs.

Spot silver increased by 0.7% to $28.66 an ounce, palladium by 0.6% to $1,052.61, and platinum by 0.7% to $986.80.

For feedback and suggestions, write to us at [e-mail]