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An worker handles one kilogram gold bullions on the YLG Bullion Worldwide Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023.
Chalinee Thirasupa | Bloomberg | Getty Photographs
Gold costs continued to hover close to document highs days after Center East tensions flared, boosting the safe-haven attraction of bullion.
Gold costs notched one other document shut Monday, with the most-active June contract for gold futures buying and selling 0.37% increased to settle at $2,383 per ounce, and a few say there’s extra room to run.
« The current gold rally has been aided by geopolitical warmth and is coinciding with document fairness index ranges, » Citi wrote in a notice dated April 15.
Demand for the safe-haven asset grew amid escalating tensions within the Center East after Iran fired over 300 drones and missiles immediately at Israel — most of which had been intercepted, because of Israel’s Iron Dome air protection system.
Market watchers are carefully monitoring a potential retaliation by the Jewish state, which has vowed to « precise a worth » from Iran.
A big retaliation might result in a wider battle, which might consequently set off renewed shopping for of gold, in addition to a rally in oil costs and strengthening of the U.S. greenback, stated Bartosz Sawicki, market analyst at monetary companies agency Conotoxia fintech.
We challenge $3,000/oz gold over the subsequent 6-18m.
Gold costs because the begin of the yr
Despite that, analysts stay bullish on the yellow metallic’s outlook, boosted by continued bodily demand in addition to its attraction as a geopolitical hedge.
« We challenge $3,000/oz gold over the subsequent 6-18m, » stated Citi’s analysts led by Aakash Doshi, Citi’s North America head of commodities analysis. The monetary gold « worth flooring » has additionally moved increased from round $1,000 to $2,000 per ounce, Citi stated.
On Friday, Goldman Sachs referred to the gold market as an « unshakeable bull market » and revised upward its worth goal for the yellow metallic from $2,300 per ounce to $2,700 by the top of the yr.
— CNBC’s Gina Francolla contributed to this report.
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