New record for gold
Gold rose to an all-time high, driven by rising geopolitical tensions in the Middle East as well as growing optimism that the Fed will begin easing monetary policy this year.
The new week started with a commodity rally.
In the spot market, gold tested the record level at 2 thousand 450 dollars per ounce.
Last week, the US dollar fell and Treasury bonds rose after data released on Wednesday showed that inflation fell more than expected in April. This situation also provided support for gold.
The safe haven status of gold has come to the fore again, especially following the geopolitical developments in the Middle East.
The death of Iranian President Ibrahim Raisi in a helicopter crash and the resignation of Israeli hawkish figure Gantz from the war cabinet caused geopolitical risks to rise.
The shooting of an oil tanker heading to China by a Houthi missile in the Red Sea on Saturday also pointed out that geopolitical risks have increased across the region.
Nicholas Frappell, Global Head of Institutional Markets at ABC Refinery, said: “The gold rally is driven by news due to the uncertainty around what is happening in Iran. One should not jump to conclusions based on too little information. Investors are likely reluctant to lose positions given the low levels of liquidity in Asia.” .
Hedge funds trading Comex futures increased their bullish bets on gold to a three-week high in the week ending May 14, according to the latest data from the Commodity Futures Trading Commission.
Along with gold, other commodities also rallied. Silver, palladium and platinum rose.
Silver rose to an 11-year high on Friday, driven by a strong rally in the spread sentiment in broader physical metals markets, where tightening supply spurred investor demand for commodities such as copper.