Gold soars by a staggering $3,400 without any resistance.
Gold's glittering rise breached the $3,400 mark this week, soaring by 1.29%. The precious metal is shining brightly, outperforming even the most robust stock indices. In US dollars, a single ounce now costs $3,439. In euros, the price increased even more dramatically, reaching €2,988 per ounce.
The gold market has experienced a rollercoaster ride since April due to a series of factors. Fears of escalations in the Middle East, such as Israel's attacks on Iran's nuclear facilities, have sent investors scurrying for safe havens. Gold, being a crisis currency, stands as a reliable fortress during times of uncertainty.
The recent uptick in gold's value marks a break from its sideways phase, which held the price within a range between $3,400 and $3,200 since mid-April. Despite this temporary pause, the price has recorded a staggering increase of over 30% since the start of the year.
The decline in tariff threats from U.S. President Donald Trump and investor profit-taking briefly dampened gold's shine, but the appeal of the yellow metal remains undimmed. The rise in gold's value can be attributed to a complex interplay of factors, such as geopolitical risks, economic uncertainty, market volatility, and a structural shift in demand. These factors have generated a lasting upward trend for gold since April 2024 until the present.
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The gold market's upward trend since April, driven by geopolitical risks, economic uncertainty, and a shift in demand, has boosted its appeal as a crisis currency, making it a preferred choice for investors seeking safe haven from uncertainties. This surge in gold's value also indicates a significant increase in its finance-related aspects, such as its price per ounce.
