Gold Prices Surge to Historic High Amid Global Tensions

Gold prices surged to a historic high on Friday, reaching $2,384.34 per ounce, driven by central bank purchases amidst geopolitical tensions. The allure of the yellow metal remained strong despite robust US economic data failing to diminish its appeal. ACY Securities analyst Luca Santos highlighted the impact of global conflicts on central bank gold buying, emphasizing gold's status as a safe haven asset.

Despite recent inflation data and a strong US jobs report raising doubts about potential rate cuts, gold is on track for a fourth consecutive weekly gain, with a year-to-date increase of over 15%. Vincent Tie, a sales manager at Silver Bullion, attributed the current rally to gold breaking out of a 42-month consolidation phase, likening it to a coiled spring being unleashed.

Higher interest rates typically reduce the attractiveness of holding non-yielding assets like gold. Meanwhile, the European Central Bank maintained record-high interest rates but hinted at possible cuts in June. Silver also saw a rise, hitting $28.75 per ounce, its highest level since February 2021. Tie noted that silver tends to outperform gold once it breaks out, with customers increasingly positioning themselves in silver in recent months.

Platinum climbed by 0.7% to $986.65, while palladium edged 0.1% higher to $1,049.83, reflecting the overall positive sentiment in the precious metals market.