Gold Prices Soar Amid Geopolitical Tensions and Falling Oil Prices
Global gold prices rose sharply on September 17, as geopolitical tensions and falling oil prices fueled demand for safe-haven assets. The spot price of gold reached $4,370 with a gain of over 2%, while US gold futures contracts rose by 0.54% to $4,410.
The spot price of silver also surged, climbing over 4.5% to $66. Analysts pointed out that the drop in oil prices to a one-week low and the easing of the US dollar index from a seven-week high contributed to the rise in gold prices.
Experts noted a strong inverse correlation between gold and energy prices due to inflationary pressures, suggesting that the decline in energy prices eased pressure on the gold market. They also mentioned that the correction of the overreaction in US 10-year bond yields supported gold, although high inflation and interest rates could limit its short-term upward potential.