Gold Prices Soar to Two-Month High Amid Rising Demand
The price of gold has risen to $4,400 per ounce on Tuesday, marking a two-month high. The surge in demand for the precious metal comes despite concerns about inflation risks and higher interest rates. Chinese institutional investors continue to build positions in gold as a defensive asset amid heightened volatility in other markets.
The People's Bank of China is also supporting the market by increasing its gold reserves. In July, the regulator added approximately 20 tonnes, following an increase of around 15 tonnes in June, the largest monthly addition since October 2023.
Despite this positive trend, uncertainty persists around a potential US, Iran agreement and the outlook for the Strait of Hormuz. Investors are also awaiting key US inflation data this week, which could shift expectations for future Federal Reserve policy.