Gold Rises Over 1% as Geopolitical Tensions Boost Demand

Gold Rises Over 1% as Geopolitical Tensions Boost Demand

Gold prices rebounded by more than 1% on Thursday after two consecutive days of losses, as investors sought safety in the metal amid renewed global tensions. Traders also remained cautious ahead of key U.S. inflation data scheduled for release on Friday.

As of 9:21 AM in New York, spot gold rose 1.2% to $4,043.80 per ounce, recovering from its lowest level in nearly two weeks recorded in the previous session. U.S. gold futures for December delivery climbed 2.3% to $4,160.50 per ounce.

Gold had reached a record high of $4,381.21 on Monday before experiencing its sharpest one-day fall in five years the following day.

Analysts said this year’s 57% surge in gold prices has been fuelled by persistent geopolitical risks, economic uncertainty, expectations of lower interest rates, and continued buying by central banks.

Non-yielding assets like gold typically gain value in a low-interest-rate environment.

JPMorgan projected that, supported by strong investor demand and steady central bank purchases averaging around 566 tonnes per quarter, gold could average $5,055 per ounce by the fourth quarter of 2026.

Among other precious metals, spot silver rose 1.6% to $49.29 per ounce, platinum gained 1.2% to $1,640.61, while palladium edged down 0.1% to $1,457.08.