Gold prices have surged over the past month as geopolitical tensions increased safe-haven demand. Doug Armand/Getty Images
The spot gold price has risen by eight percent since the end of September and has exceeded the 2,000 US dollar (1,900 euro) mark per ounce.
With these gains, the precious metal is on track for its best monthly performance since November 2022.
The demand for secure assets has increased sharply since the start of the war between Israel and Hamas.
Gold could soon have its best month since November 2022. Demand for so-called “safe havens” is rising as investors worry about the ongoing war between Israel and the United States.
Spot prices for the precious metal have risen eight percent since the end of September and were trading at nearly $2,007 (1,904 euros) per troy ounce on Tuesday, Refinitiv data shows.
Gold has outperformed other low-risk competitors – except one
Gold bullion prices have skyrocketed since Hamas’s first attack on Israel on October 7. Wall Street’s worries about this conflict have boosted safe haven assets, whose prices tend to remain stable in times of geopolitical uncertainty.
Over the past month, gold has outperformed other low-risk candidates. This includes, for example, the US dollar, which has fallen by almost one percent. Gold also underperformed 10-year Treasury bonds, which are still reeling from one of the worst crashes in the market’s history.
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But it has lagged behind Bitcoin. The value of the token, which some crypto bulls see as a digital alternative to gold, rose more than 25 percent in October. This is due to investor optimism that US regulators will soon approve a Bitcoin ETF.
In addition to safe-haven interest, gold has also rallied recently because central banks are hoarding gold to reduce their reliance on the U.S. dollar, analysts say.
“Gold demand is healthy this quarter compared to the five-year average,” Louise Street said on Tuesday at the release of the group’s quarterly report. She is a market analyst for the World Gold Council. “Given increasing geopolitical tensions and expectations that central banks will continue their purchases, gold demand could surprise.
This text was translated from English by Muriel Dittmar. You can find the original here.
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