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Gold prices continued their relentless ascent on Monday, propelled by speculative activity and persistent tensions in the Middle East, which overshadowed the robust US jobs data released last week.
In spot transactions, gold climbed 0.3 percent to $2,335.73 per ounce by 0646 GMT, after reaching a record high of $2,353.79 earlier in the session. Meanwhile, US gold futures advanced 0.4 percent to $2,354.50.
Geopolitical tensions in the Middle East provided additional momentum for gold prices, as investors sought safe-haven assets amidst escalating risks.
Central bank purchases, heightened demand for safe-haven assets amid increasing geopolitical uncertainties, and investment fund activity tracking market trends collectively contributed to a 12 percent surge in gold prices since the beginning of the year.
Despite March’s stronger-than-expected job growth in the United States, indicating a robust end to the first quarter for the US economy, expectations of a Federal Reserve interest rate cut this year may be delayed.
UBS raised its year-end target price for gold to $2,250 per ounce due to strong demand and increased purchases of exchange-traded funds.
Demand for gold in India remained subdued last week due to reluctance among buyers stemming from the sharp rise in local prices, while prices remained stable in China, the world’s largest consumer of gold.
In other precious metals, silver rose 1.1 percent to $27.77 per ounce in spot transactions, while platinum edged up 0.1 percent to $927.78 per ounce. Palladium also saw a modest increase of 0.2 percent, reaching $1,001.76 per ounce.
