Demand for safe havens fueled gold’s record rise around $2,400 per ounce during trading on Friday, April 12.
The precious metal reached a new record peak, recording a fourth consecutive weekly gain, as geopolitical risks in the Middle East and economic concerns surrounding China attracted strong demand.
Gold rose by about 2.35% during Friday trading, recording $2,428 per ounce, before catching its breath and recording a decline to the level of $2,336.87 per ounce, a decline of 1.5%. While prices rose by about 1% during the week. Gold futures in the United States rose 0.1% to $2,374.1.
Active Trades chief analyst Ricardo Evangelista said that there is potential for a further rise in gold prices thanks to increasing central bank purchases and with rising demand for safe haven assets along with growing concern among investors about the escalating geopolitical conflict in the Middle East, according to what was reported by CNBC. .
Gold often becomes more attractive during periods of rising prices. Investors received more disappointing inflation news recently, which boosted the precious metal’s rise.
He added that on top of security concerns and evidence of persistent inflation, doubts about the strength of the “Chinese economy” are fueling concerns about the growth of the global economy, and this is also exacerbating market sentiment about the search for safe haven assets.
Investors also watched data showing China’s exports and imports contracted in March, highlighting the headwinds facing policymakers as they try to shore up a fragile economic recovery.
Asian central banks continue to boost their purchases of gold as well. Vietnam’s central bank said it would increase gold bullion supplies to stabilize the market, while China’s central bank added more gold to its reserves in March.
Meanwhile, silver rose 2.5% to $29.19 per ounce, marking its highest levels since early 2021.
Frank Watson, market analyst at Kinesis Money, said in a note that gold’s strength appears to have seeped through to support silver prices, and Tuesday’s industrial production numbers gave another indication of industrial demand for silver.
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