Gold at a record high amid growing geopolitical concerns

Gold prices rose on Tuesday, approaching the record high level recorded last week, as concerns about escalating geopolitical tensions between Iran and Israel boosted demand for the yellow metal as a safe haven.

According to Reuters, by 0355 GMT, gold in spot transactions rose 0.2% to $2,387.11 per ounce, after hitting an all-time high of $2,431.29 on Friday. US gold futures increased 0.9% to $2,403.90.

Matt Simpson, chief analyst at City Index, said that gold received another boost from the latest news from the Middle East, but it was rising even before that thanks to central bank purchases and rising inflation expectations, which means that gold is being used as an inflation hedge again.

Gold rose 1.6% in the previous session despite data showing US retail sales rose more than expected in March.

Data issued by the United States raised questions about the possibilities of lowering interest rates, as the market is now betting on two cuts of less than a quarter of a point by the end of the year, compared to three cuts about a month ago.

As for other precious metals, silver fell 0.3% to $28.80 per ounce, platinum rose 0.4% to $966.49, and palladium lost 1% to reach $1,025.43.