Amid Inflation and Conflicts, Gold Reveals its Safe Haven Status: A Look into Its Latest Price Increase
Gold has seen a 12% increase in value this year despite the uncertain environment and inflationary pressures. This rise is due to strong central bank purchases, demand from Asian markets, and increased buying from investors seeking a safe haven amid conflicts in regions like Ukraine and the Middle East. Chicago Fed President Austan Goolsbee expressed on Friday that he would feel more comfortable about the economy not overheating if there were additional reports similar to April’s. This could potentially strengthen the case for monetary easing later this year. However, recent developments have made gold less appealing, particularly with signs of easing tensions in the Middle East. Despite this, Israel’s military activities, such as moving civilians out of Rafah, suggest a potential escalation in Gaza. Cease-fire talks between Hamas and Israel have stalled, with the main point of contention being the duration of any truce. At 10:46 a.m. in London, spot gold prices rose by 0.8% to $2,319.75 per ounce while silver palladium platinum all saw gains in their respective prices
