Gold Prices Soar to $4,400 Amid China Demand and US-Iran Uncertainty
Gold prices surged to $4,400 per ounce on Tuesday, marking their highest level in ten weeks. The increase was driven by strong demand from Chinese institutional investors and uncertainty surrounding US-Iran tensions.
The People's Bank of China accelerated its gold purchases in July, adding approximately 20 tons to its reserves after buying around 15 tons in June. This marked the largest increase since October 2023 and extended the central bank's buying streak to 21 consecutive months.
Geopolitical uncertainty also contributed to demand for safe-haven assets, as investors assessed the impact of rising oil prices on global inflation and the US interest-rate outlook. Markets are awaiting key US inflation figures due this week for further indications about the Federal Reserve's next policy steps.