Gold Shines Again as Global Tensions Boost Safe-Haven Demand

Gold prices jumped on Thursday after two days of losses, lifted by renewed geopolitical risks and trade concerns. Investors turned to the yellow metal as a safe haven while waiting for key U.S. inflation data.

Spot gold climbed 1.1% to $4,140.19 per ounce, while U.S. gold Prices futures for December delivery rose 2.1% to $4,152.40 per ounce. The metal had dropped to a near two-week low earlier in the week after hitting a record $4,381.21 on Monday.

Why Gold Prices Is Rising

According to analysts, the recent rise shows that the same key factors driving gold’s rally this year remain strong. These include geopolitical tensions, economic uncertainty, central bank buying, and expectations of interest rate cuts.

Peter Grant, vice president and senior metals strategist at Zaner Metals, said traders took advantage of lower prices. “There was some opportunistic buying on the dip,” he noted, adding that ongoing global tensions have added to gold’s strength.

Impact of Global Politics

U.S. President Donald Trump recently imposed new sanctions on Russia related to the war in Ukraine. The sanctions target major oil companies Lukoil and Rosneft, raising global concerns over trade and energy supplies.

Such developments often lead investors to move funds into safe assets like gold. The metal is viewed as a hedge against political and economic uncertainty.

A Year of Strong Gains

Gold has gained about 57% this year, supported by consistent central bank purchases and expectations that the U.S. Federal Reserve will continue to lower rates. Lower interest rates make non-yielding assets like gold more attractive to investors.

Despite some recent volatility, analysts say the overall trend remains positive. As long as global risks persist, gold’s appeal as a safe-haven asset is likely to stay firm.