Gold gains on geopolitical tension enhancing safe haven appeal

Gold prices rose today, Thursday, and compensated for their losses from the previous session with a boost from geopolitical tension that strengthened demand for the yellow metal as a safe haven.

According to Reuters, gold rose in instant transactions by 0.1%, recording $2,334.64 per ounce by 0809 GMT. Gold recorded record highs for eight consecutive trading sessions until Tuesday.

US gold futures rose 0.2% to $2,352.40.

Gold prices have risen 14 percent so far this year, driven by strong purchases from central banks and the demand for safe havens with continued geopolitical risks and high demand from funds that keep pace with market trends.

Higher-than-expected inflation data and a jobs report showing a stronger than expected labor market last week also raised more questions about the timing and size of interest rate cuts this year.

High interest rates reduce the attractiveness of gold, which does not generate a return.

As for other precious metals, silver fell in spot transactions by 0.2% to $27.93 per ounce after reaching the highest level since June 2021 on Wednesday. Platinum rose 1.3% to $972.60, and palladium rose 0.5% to $1,056.31.