. Gold Soars as Geopolitical Tensions Intensify

Gold Soars as Geopolitical Tensions Intensify

Gold Soars as Geopolitical Tensions Intensify

10 May 2024

Gold surges due to its safe-haven appeal and anticipation of reduced interest rates

  • Gold prices rise as investors seek safety amidst escalating geopolitical tensions.
  • The resurgence of speculation regarding early Federal Reserve rate cuts, fueled by weak US labor market data, adds to the upward momentum of gold.
  • Consequently, gold prices enter a short-term uptrend, with a bias favoring long-term holders.

On Friday, the price of gold (XAU/USD) climbs nearly one percentage point, reaching the $2,360 range. The uptick in gold prices is attributed to escalating geopolitical tensions surrounding Gaza, reinforcing its status as a safe-haven asset.

The upward movement is also driven by apprehensions regarding the US labor market following recent data, leading to speculation that the Federal Reserve (Fed) might expedite interest rate cuts. This enhances the appeal of the non-yielding precious metal.

Gold prices increase due to the termination of peace negotiations and worries regarding the US labor market.

Gold prices surge due to its safe-haven appeal amid the breakdown of peace talks between Hamas and Israel in Cairo. Israeli military presence intensifies around Rafah, the remaining major urban center in Gaza not yet devastated.

Meanwhile, the United States is halting the delivery of weapons and military assistance to Israel following President Biden’s caution against launching a full-scale assault on Rafah. Despite the advisory, there are reports of airstrikes targeting a mosque and multiple residences in the city, resulting in the deaths of more than a dozen individuals, including women and children, as reported by Reuters.