Gold Prices Soar to Two-Month High on Easing Geopolitical Tensions

International gold prices surged to a two-month high after spot gold briefly breached the $4,300 mark on the 6th. The rally was driven by easing geopolitical tensions and cooling rate hike expectations following US-Iran negotiations on a military agreement.

The resumption of talks led to a drop in international crude oil prices, reducing fears of energy-driven inflation. As a result, capital rotated into gold-related assets, with the Yuanta S&P Gold 2x ETF (00708L) surging over 5% and its market price hitting a new high since June 18.

The cumulative weekly gain of 10.29% for 00708L made it the most eye-catching trading instrument on the board, despite still being down 14.8% year-to-date. The Yuanta S&P Gold ETF (00635U) and Yuanta DJ Commodity Silver ER Futures ETF (00738U) also gained 2.88% and 1.57%, respectively.