Gold shows early signs of reclaiming safe-haven appeal after Iran war selloff
LONDON — Gold's 9 percent rebound in August to around $4,400 an ounce suggests bullion is starting to regain favour with institutional investors and central banks, leaving the market better placed to extend gains as it moves beyond the initial shock of the U.S.-Israeli war with Iran. The outbreak of the war in late February drove gold from a record high of $5,595 per ounce in January to below…
Gold has experienced a notable resurgence in August, with prices reaching around $4,400 an ounce, indicating a potential return to its role as a safe-haven asset following the recent Iran war selloff. This positive trend suggests that institutional investors and central banks are increasingly favoring gold, positioning the market for further gains as it moves past the initial shock of the U.S.-Israeli conflict with Iran.
The outbreak of the war in late February saw gold drop from a record high of $5,595 per ounce in January to under $4,000 in June, as investors sought liquidity and central banks used reserves to support domestic economies amid a surge in oil prices. Analyst Ross Norman notes that gold has broken above two key resistance levels this month, driven by lower oil prices and reduced U.S. inflation expectations.
If oil prices remain stable and the Middle East situation does not escalate, gold's upward trajectory appears to be the most likely scenario.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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