Spot gold saw a significant increase of 1.5 per cent to reach $2,406.99 per ounce by 05:56 a.m. ET (1256 GMT), hitting its highest level since May 22. This surge was mirrored in U.S. gold futures, which also rose by 1.4 per cent to $2,412.60.
The rise in gold prices can be attributed to a variety of factors including economic uncertainty, geopolitical tensions, and a weaker U.S. dollar. Investors often turn to gold as a safe haven asset during times of market volatility and global instability. Additionally, the ongoing Covid-19 pandemic has continued to impact economies around the world, further driving up demand for the precious metal.
As central banks continue to implement unprecedented stimulus measures to support their economies, concerns about inflation and currency devaluation have led to increased demand for gold as a hedge against these risks. Gold is traditionally seen as a store of value and a way to preserve wealth during times of economic turmoil.
With the global economy facing numerous challenges, it is expected that gold prices could continue to rise in the coming months as investors seek out safe haven assets to protect their portfolios from uncertainty.
