Gold prices rose to a record high in Asian trade on Monday as raised geopolitical tensions in the Middle East boosted safe haven demand. While a broader rally in metal markets also impacted the yellow metal.
Gold futures expiring in June reached a record high of $2,444.55 per ounce. While spot gold increased by almost 1% to a record high of $2,440.56.
According to reports from the media over the weekend. On Sunday, bad weather caused the helicopter carrying Iranian President Ebrahim Raisi or his foreign minister to crash.
While rescue operations were in progress, Iranian officials were quoted by Reuters as saying that their lives were in danger.
Iranian Helicopter Crash Escalates Geopolitical Tensions
In addition to being considered as a strong proponent of putting more morality laws into place and suppressing domestic protests, Raisi was thought to be a potential candidate for Iran’s next supreme leader.
Fears of an Israeli-Iranian war had driven gold prices to all-time highs in April. Even though that scenario never came to pass. However, the likelihood of further unrest in the Middle East now seemed to be supporting the yellow metal once more.
In order to maintain high tensions in the area, Israel continued its attacks against Gaza.
The demand for safe haven was further bolstered by raised military action between Russia or Ukraine, as both nations launched strikes against one another over the weekend.
On Monday, other precious metals saw gains as well. Silver futures jumped 3.2% to an over 11-year high of $32.285 an ounce. While platinum futures increased 0.2% to $1,096.50 an ounce.
Growing expectations of a the United States interest rate reduce this year supported higher prices for a wider range of metals. While anticipations of higher demand and limited supply—particularly for industrial metals—also helped to drive up prices.
This week’s focus is on more signals from the Federal Reserve, as expectations that the institution may start reducing interest rates as early as September were heightened by some weak April inflation in the US data.