Gold reaches new all-time high as inflation and geopolitical concerns mount

Precious metal nears $2,300 per ounce amid safe-haven demand.

Gold reaches new all-time high as inflation and geopolitical concerns mount
Gold Today

Gold prices extended record gains on Wednesday, nearing the $2,300 per ounce mark, as rising inflation fuelled demand for the precious metal as an inflation hedge. Bullion traders shrugged off doubts over an imminent US interest rate cut and higher Treasury yields.

Despite the dollar retreating from 4-½ month highs and hawkish comments from top Federal Reserve officials signalling potential delays to rate cuts, gold continued receiving safe-haven inflows. This was driven by Ukraine's attacks on Russia's oil infrastructure exacerbating supply concerns. Spot gold (XAU/USD) traded at $2,284.45 by 07:10 GMT.

A broad stock market sell-off, as risk appetite deteriorated, also boosted gold's appeal as a safe-haven asset. Rising US yields and the prospect of the Fed not cutting rates in June did little to deter buyers.

Markets rattled amid fears over delayed rate cuts
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Several Fed policymakers warned that persistent inflation and a robust labour market could delay planned rate cuts, just days before key US non-farm payrolls data due on Friday. Recent jobs data has consistently exceeded forecasts amid labour market tightness.

Gold, a traditional inflation hedge and haven in uncertain times, has gained over 10.8% this year, set for a seventh straight daily increase. Silver also rallied, up over 4% on Tuesday and another 1% on Wednesday to trade at $26.40 by 07:10 GMT.

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