On Friday, gold prices soared to a historic high, surpassing the $2,400 per ounce milestone, as escalating tensions in the Middle East prompted investors to flock to safe-haven assets. The surge in gold prices, marking the fourth consecutive week of gains, underscores heightened global apprehension and the persistent appeal of precious metals as a store of value during times of geopolitical instability.
Despite a slight retreat from its peak, spot gold eased to $2,353.35 per ounce after reaching a record high of $2,419.79, maintaining a weekly increase of around 1%. Similarly, U.S. gold futures settled 0.1% higher at $2,374.1, reflecting sustained investor interest in gold as a hedge against geopolitical risks and market volatility.
The surge in gold prices has also influenced other precious metals, with platinum testing the pivotal $1,000 per ounce level, reaching its highest point in nearly four months. This collective upsurge in precious metals highlights the broad-based demand for safe-haven assets amidst geopolitical uncertainties and escalating tensions in the Middle East.
Notably, the White House’s acknowledgment of a reportedly imminent attack by Iran on Israel has further fueled concerns, reinforcing the appeal of gold as a traditional safe-haven investment. The surge in gold prices has defied expectations of an early interest rate cut from the Federal Reserve, underscoring the metal’s resilience and the prevailing sentiment of fear of missing out among investors.
Goldman Sachs has raised its year-end gold price forecast to $2,700 per ounce, citing the metal’s remarkable performance amidst unconventional macroeconomic factors, further emphasizing the enduring bullish sentiment surrounding precious metals.
In parallel, spot silver experienced a marginal decline after reaching its highest level since early 2021, while platinum and palladium demonstrated notable gains, positioning all three metals for weekly increases, reflecting the broader trend of heightened demand for precious metals in response to geopolitical uncertainties.