Gold surges past $3,000 due to geopolitical tensions

Gold prices have reached a record high of over $3,000 per ounce. This surge is driven by rising geopolitical tensions, fears of a continued trade war, and a weakening dollar. Gold was priced at $3,025.43 for spot gold and $3,028.80 for gold futures, marking significant gains since the start of the year. The US dollar has weakened recently, falling nearly 6% from its peak in January. This drop is linked to concerns that trade tariffs imposed by former President Donald Trump could push the US economy into recession. The British pound has shown strength against the dollar, rising to $1.30 for the first time since November. However, the pound has dipped against the euro. Market analysts attribute the rise in gold prices to increased demand as investors seek safe havens amid uncertainties. Australia’s ANZ bank predicts that gold will continue to rise due to geopolitical tensions and strong purchases from central banks. Oil prices have also increased, with Brent crude nearing $71.20 per barrel and US West Texas Intermediate climbing to $68.24 per barrel. The recent military strikes by Israel in Gaza and heightened tensions in the Middle East are raising concerns about global oil supply stability. Additionally, strong retail sales data from China has boosted market sentiment, despite challenges such as rising unemployment and slowing factory output. Meanwhile, the FTSE 100 index in London rose by 0.3% on Tuesday morning.