Gold has once again become investors’ top choice as prices in the global market surged to a new record high, crossing $4,100 per ounce.
According to Bloomberg, gold prices jumped 1.6% at one point in international trading, pushing the per-ounce rate above $4,100. Gold had also recorded nearly a 1% increase last week.The rally comes despite a temporary de-escalation in military tensions between the United States and Iran. Reports indicate that the US has halted its nearly two-week-long strikes against Iran without any formal announcement, while Iran has also signaled it will refrain from immediate retaliation.
The development is being viewed as a temporary easing of tensions in the region.In another positive signal, Iran and Oman held talks on the key issue of maritime traffic through the Strait of Hormuz.
The discussions eased concerns about potential disruptions to global oil supplies and rising inflation.However, analysts say that despite the temporary calm in geopolitical tensions, global investors are still treating gold as a safe-haven asset amid ongoing uncertainty. The continued buying has pushed gold prices to new stable and higher levels in the international market.The record surge highlights renewed investor confidence in gold as a hedge against economic and political risks.
