Gold Surges 15% as Conflict and Uncertainty Boost Safe-Haven Demand

Gold prices have surged by 15% since August 25, reaching their highest level in over three months. This increase is attributed to ongoing conflict in the Middle East and persistent political uncertainty, driving investors towards safe-haven assets.

The rally began early in August, when hopes for a ceasefire between the US and Iran and the resumption of shipping through the Strait of Hormuz were high. Although neither event materialized, gold continued to rise.

Investors are also anticipating upcoming US inflation data and a speech by Federal Reserve Chair Kevin Warsh, which is further contributing to market volatility. Analysts believe that any pullback in gold prices will be met with sustained demand from buyers targeting the $4,900-$5,000 resistance zone.