Gold Prices Rise on Safe-Haven Demand Amid Geopolitical Tensions
Gold prices rose for the fourth straight session on Friday (3/1), continuing their stellar performance in 2024 with a gain of more than 27%, the metal’s best annual return since 2010. The sustained rally was attributed to strong safe-haven demand amid persistent geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict.
According to three sources cited by Axios, US President Joe Biden reportedly discussed contingency plans to strike Iran’s nuclear facilities if Tehran makes significant progress in developing a nuclear bomb before Donald Trump’s inauguration on January 20. The discussions highlighted growing concerns over Iran’s nuclear ambitions during the transition period between administrations.
A Financial Times report noted that the People’s Bank of China (PBOC) anticipates a timely interest rate cut this year. Traders are closely monitoring the potential recovery of the Chinese economy and its impact on gold demand. President Xi Jinping reiterated his commitment on Tuesday to prioritizing economic growth, promising more proactive policies to strengthen China's economy by 2025.
Source: FXStreet