(ConservativeSense.com) – The price of gold is skyrocketing as global tensions increase, hitting $2,400 per ounce in April. Experts say the price will keep rising as investors augment demand and central banks increase purchases. Ricardo Evangelista of ActivTrades said economic uncertainty in China and the escalating Middle East conflict compound “the market sentiment of seeking safe-haven assets.”
Middle East tensions have also pushed up the price of oil, which rose 2% by April 12. Both gold and Brent crude futures are up 1.6% and 2.44%, respectively.
China’s central bank has added more gold to its reserves, as Vietnam announced it would increase gold bar supplies to stabilize the market. Economists describe “the yellow metal” as the best-performing asset class of 2024, rising 15% this year. Meanwhile, other precious metal futures fell, with platinum down 0.7% and silver 0.3%.
Analysts say events over the weekend of April 13 played a significant role and will continue to do so as the world awaits Israel’s response to an Iranian drone attack. In an attempt to de-escalate the crisis, the United States said it would not react to Iran’s drone attack, which caused minimal damage to the Jewish state.
On April 14, a senior White House spokesperson told reporters that President Biden spoke to Israeli Prime Minister Benjamin Netanyahu and told him to think “very carefully and strategically” about his next move.
US forces shot down around 80 drones and six ballistic missiles during the attack, and 99% of fired missiles were intercepted. The US said this was evidence of Israel’s military superiority, and Israel had come off better in the exchange that began with an Israeli strike on Iran’s Syrian consulate that killed a senior Iranian General.
Meanwhile, the Chinese central bank continues to increase its gold reserves, now comprising 4% of its total. Guonan Ma of the Asia Society Policy Institute said China has been adding to its reserves for 14 months, hoping to “diversify away from dollar assets.”
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