Recently, the global financial markets have experienced heightened volatility, pushing precious metal prices significantly higher. Spot gold, in particular, has shown strong performance, climbing back above the key $4,900 per ounce level with a daily gain of 2.5%, signaling robust upward momentum.
Drivers Behind the Gold Rally
The recent rebound in gold prices is attributed to several key factors:
- Increased market risk aversion, prompting investors to seek safe-haven assets
- A weaker US dollar making gold more attractive to international buyers
- Elevated geopolitical tensions further supporting bullion demand
Analysts note that gold's safe-haven appeal is especially pronounced in the current economic climate, with expectations that it will remain in favor in the near term.