Gold price reaches new high of $2,400.67

Gold price reaches new high of $2,400.67

Gold prices continued their record-breaking rise on April 12, 2024, reaching a remarkable $2,400.67 per troy ounce at midday, marking another high. This impressive development is driven by ongoing geopolitical tensions in the Middle East, which is prompting investors to invest more in the commodity, which is known as a safe haven. At the same time, silver is also at its highest level since February 2021.

Over the course of this year, the price of gold has recorded a strong increase, with silver also benefiting from this positive trend. According to traders, various central banks, including China's, are increasingly buying gold as part of their investment strategy. In addition, increased geopolitical risks, particularly in the Middle East and Ukraine, are supporting the upward trend in gold prices. Investors are also factoring in potential rate cuts by the Federal Reserve in 2024, although still high U.S. inflation data clouds that outlook somewhat.

Commerzbank experts, including Thu Lan Nguyen and Carsten Fritsch, commented that despite unexpectedly high US inflation data, the gold price rally only stalled briefly and has already reached a new record high. Geopolitical tensions in the Middle East could continue to heat up, with reports suggesting Israel is preparing for possible attacks from Iran.

Despite the strong US dollar, other metals such as platinum and palladium also rose. Typically, a stronger U.S. currency has a negative impact on dollar commodity prices because it can dampen interest from foreign buyers. Overall, the price of gold continues to remain strong due to various influencing factors and is recording impressive highs, influenced by both geopolitical developments and economic indicators.