Gold prices continued to rise on Wednesday as investors sought safety amid renewed geopolitical tensions between the United States and Iran. The strong demand pushed Gold close to key psychological levels after a sharp rally in the previous session.
In the international market, spot Gold climbed 2.7 percent to around $5,071 per ounce in early Asian trading. This came after a massive 5.9 percent jump on Tuesday, which marked the metal’s biggest daily gain since 2008. Last week, Gold also touched a record high near $5,595 per ounce.
US Gold futures for April delivery also moved higher. They gained over 3 percent to trade above $5,090 per ounce. Analysts said the rally reflects growing investor concerns about global risks and economic uncertainty.
The latest rise in Gold prices follows reports of increased military activity in the Middle East. The US military confirmed that it shot down an Iranian drone near an aircraft carrier in the Arabian Sea. This incident added to existing tensions and increased the metal’s safe-haven appeal.
Market experts believe such developments often push investors toward Gold. The metal is widely seen as a hedge during times of political conflict and financial stress. As risk levels increase, demand for Gold usually strengthens.
Further uncertainty is linked to upcoming nuclear talks between the US and Iran in Oman. Investors are closely watching these discussions, as any negative outcome could increase volatility in global markets.
Economic factors are also supporting Gold. The US government recently ended a partial shutdown, allowing delayed economic data to be released. Meanwhile, expectations of future interest rate cuts by the Federal Reserve have boosted investor interest in non-yielding assets like Gold.
Analysts at IndusInd Securities said Gold could soon test the $5,100 level. They also forecast prices may reach $5,600 by the end of April. Their long-term outlook suggests Gold could climb to $6,000 per ounce by the end of the year.
Technical analysts share a similar view. They expect a short-term trading range between $4,950 and $5,200. However, the overall trend remains positive due to strong demand and global uncertainty.
In contrast, concerns are growing in equity markets. Major technology stocks dominate a large portion of the US stock index. This concentration has made some investors more cautious.
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As a result, many are shifting funds toward Gold. The metal continues to benefit from its reputation as a stable and reliable asset during uncertain times.
