Gold Soars on Geopolitical Tensions and Weakening Dollar
Global gold prices have surged by over 2% as investors seek safe-haven assets amidst rising geopolitical tensions. The spot price of gold has reached $4,370, up 2.4% from previous levels.
The rise in gold prices is attributed to the weakening US dollar and falling oil prices. Oil futures contracts have dropped to a one-week low, with Brent crude oil futures trading at $102.86 per barrel, down 2.8%, and West Texas Intermediate crude oil at $100.62 per barrel, down 1.77%.
Analysts point out that there is an inverse correlation between gold and energy prices due to inflationary pressures. The decline in energy prices has eased pressure on the gold market, allowing it to rise. However, experts caution that high inflation and interest rates may limit the short-term upward potential of gold.