Gold Prices Soar on Easing Geopolitical Tensions and Soft US Economic Data

Gold prices have risen this week due to easing geopolitical tensions in the Middle East and softer-than-expected US economic data. The precious metal is on track to post a modest weekly gain of about 5%.

Spot gold was trading nearly flat at around $4,240 per ounce as of 5:55 a.m. IST, while spot silver edged lower to $61.41 per ounce. However, both metals are headed for a weekly gain of more than 6% and 5%, respectively.

The sharp decline in crude oil prices has also helped ease inflationary pressures, reducing the need for aggressive interest rate hikes by central banks. This creates a relatively favourable backdrop for non-yielding assets such as gold.