Gold prices surged near $5,100 on Wednesday, ignited by safe-haven demand following renewed geopolitical tensions between the U.S. and Iran. This rise follows a momentous day for the yellow metal, which saw its most significant daily increase in 17 years. Spot gold briefly climbed 2.8% to $5,076.01 per ounce as of 0655 GMT, a direct result of increasing market anxieties.
Further amplifying the situation, U.S. gold futures for April delivery increased by 3.3% to $5,097.20 per ounce. The escalation came on the heels of the U.S. military’s report of downing an Iranian drone that posed a perceived threat to the Abraham Lincoln aircraft carrier stationed in the Arabian Sea.
Despite a recent low of $4,403.24, gold’s resilience was highlighted by ANZ analyst Soni Kumari, who cited unchanged geopolitical and economic backdrops. Supporting this sentiment, Goldman Sachs highlighted potential upside risks to its optimistic $5,400 year-end forecast, as both central banks and private investors maintain interest in gold. Analyst Jigar Trivedi projected prices could reach $6,000 per ounce by the end of the year.
(With inputs from agencies.)