The ounce price of gold is preparing for the strongest weekly rise in the last 7 months

The ounce price of gold gained more than 5% in value in the last week and exceeded $1,900 for the first time since September 27.

Concerns that the Israeli-Palestinian conflict may spread to a wider area increased the demand for gold, known as a safe haven.

The ounce price of gold, which increased by 2.7% to $ 1,919.2 today, is preparing for its strongest daily and weekly closing since March.

The price per ounce of gold, which has increased by 5.4% since Friday last week and reached $1,919.2, is currently finding buyers at $1,912, with an increase of 2.3% compared to the previous close.

The ounce price of gold has risen due to concerns that the Israeli-Palestinian conflict may spread to a wider area and the tension in the Middle East may continue for a while, although the inflation data announced yesterday in the USA was above expectations.

Yesterday, the news flow was followed that the international airports in Damascus and Aleppo were simultaneously out of service during Israel’s attack on Syria.

Gold continues to be preferred by investors as a safe haven in times of crisis and increased geopolitical risk.

While the US 10-year bond interest decreased by approximately 11 basis points to 4.59% today, the dollar index is at 106.4, 0.1% below its previous closing.

In the report announced today by the World Gold Council, “Geopolitical events and their impact on gold will continue to be higher than the previous 10 years, even if the war is over.”

Reminding that gold has a solid history as a crisis protection tool due to its absence of credit risk and negative correlation with risky assets, the report noted that it is normal for geopolitical tensions to affect gold returns, taking into account changes in other factors.

Source: AA / Prepared by Irem Yildiz

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