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Bloomberg Quint
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Gold Pushes Toward Record High As Mideast War Drives Haven Bids
- Gold prices neared a record high on Monday as tensions between Israel and Iran drove investors towards safe-haven assets.
- The precious metal rose by 0.6% in early Asian trading, reaching around $3,450 an ounce, just $50 shy of its all-time peak in April.
- The conflict between Israel and Iran intensified over the weekend, leading to higher energy prices due to threats to energy infrastructure and transport in the region.
- Geopolitical risks, along with concerns over global economic growth from trade tensions and central banks diversifying away from the dollar, have fueled the more than 30% rally in gold prices in 2025.
- Gold's 1.4% surge on Friday followed weak US inflation and jobs data, increasing expectations of a Federal Reserve interest rate cut later this year.
- Lower interest rates tend to benefit gold as it does not provide interest payments.
- Spot gold was up 0.4% to $3,446.77 an ounce in Singapore, while the Bloomberg Dollar Spot Index gained 0.1%, with silver holding steady and platinum and palladium making gains.
- Investors are closely monitoring the situation in the Middle East and its potential impact on energy markets and global economy.
- Gold's performance in response to geopolitical events highlights its role as a traditional safe-haven asset in times of uncertainty.
- The metal's recent rally reflects a combination of geopolitical tensions, central bank actions, and macroeconomic concerns weighing on financial markets.
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