New US sanctions on Russia and China’s export-cutting measures have escalated geopolitical tensions worldwide. As more people sought gold as a safe-haven investment, the precious metal’s price surged on Thursday on global markets.
By Thursday noon, spot gold rose 0.6 per cent to $4,119.49, after falling to its lowest level in nearly two weeks a day earlier.
US gold futures for December delivery rose 1.8 per cent to $4,136 an ounce.
In his second term, US President Donald Trump has targeted Russian energy corporations Lukoil and Rosneft with fresh sanctions over Ukraine.
In response to China’s activities, the Trump administration also intends to punish software-based exports, including jet engines and laptops. Recently, Beijing placed additional restrictions on exports of rare earth elements.
This year, gold prices have increased by around 57 per cent, and on Monday, they reached a record high of $4,381.21 an ounce. The primary causes of the increase include geopolitical unpredictability, anticipations of reduced interest rates, and central banks’ ongoing gold purchases.
On Thursday, spot silver prices increased 1.7 per cent to $49.33 an ounce, platinum prices increased 2.3 per cent to $1,659.50, while palladium prices decreased 0.6 per cent to $1,450.
