Gold prices hit all-time high

The gold price reached a record US$2,400.67/oz on Friday, largely due to geopolitical tension and expectations of lower interest rates around the world, among other issues. 

The surge in prices has been “driven by 1) greater demand as a safe haven asset, due to tensions in the Middle East, 2) the expectation that interest rates in the world will fall this year, and 3) greater demand as a store of value in the face of high inflation in the US,” the economic analysis director of Grupo Financiero Base, Gabriela Siller, said on social media.  

Gold prices are on track for their fourth consecutive weekly rise, as the above issues are compounded by to economic concerns about China, spurring strong demand in safe-haven assets.

The yellow metal gained around 3% over the week, which US gold futures rose 1.8% to $2,414.30/oz.

There is a possibility that prices will continue to rise due to central bank purchases and increased demand for safe assets amid growing investor anxiety over escalating geopolitical conflict, Ricardo Evangelista, senior analyst at ActivTrades, was quoted as saying by Reuters.