Gold prices hit an all-time high amid geopolitical tensions, surpassing $4,500 per ounce

Source: BlockMedia Original Title: Gold ‘Rages’ Amid Geopolitical Risk Spread, Surpassing $4500 per Ounce to Reach New Highs Original Link: https://www.blockmedia.co.kr/archives/1029294 International gold prices have hit a new all-time high, surpassing the $4500 mark. As geopolitical tensions remain unresolved, the preference for safe assets persists, and gold prices continue to rise even at high levels.

In Asian markets, COMEX gold futures(continuous contract)reached $4503.0 per ounce, up 0.15% from the previous day. During trading, prices temporarily stabilized above the $4500 level, which was previously considered a psychological resistance, effectively establishing the $4500 range as a new price zone. Although the increase compared to the previous trading day is limited, the continued buying interest despite high-price concerns is notable.

The main factor behind the bullish trend in gold prices is identified as global geopolitical uncertainty. Political tensions surrounding Latin America, unresolved military risks in Eastern Europe, and ongoing instability in the Middle East all contribute to the upward pressure. A financial market strategist explained, “Concerns that geopolitical developments in Latin America could worsen further are supporting safe asset demand,” and “Uncertainty in Eastern Europe and the Middle East is also exerting upward pressure on gold prices.”

The trend of diversification into dollar assets also supports gold prices. As geopolitical risks expand, efforts to reduce dependence on the dollar are intensifying, making gold an attractive alternative asset. Additionally, the central banks’ continued gold purchase policies since last year have also supported the price floor from a medium- to long-term supply and demand perspective.

Last year, gold surged approximately 65% annually, marking an extraordinary bullish run. This year, the upward trend has continued since the beginning of the year, with prices reaching record highs. Silver prices have also recently experienced significant gains, improving overall sentiment toward precious metals investments.

Market participants remain cautious about increased volatility due to high-price concerns in the short term, but the prevailing view is that as long as geopolitical uncertainties persist, the likelihood of gold prices falling significantly below $4500 remains limited. In an environment where risk aversion remains strong, gold is expected to maintain its strength even at high levels.