Gold rebounds over 1% as investors seek safety amid global tensions

After two straight days of decline, gold prices rebounded by more than 1% on Thursday as investors sought safe-haven assets amid renewed geopolitical tensions. Traders also remained cautious ahead of key U.S. inflation data due on Friday.

At 9:21 AM New York time, spot gold was up 1.2% at $4,043.80 per ounce. In the previous session, it had fallen to its lowest level in nearly two weeks.

U.S. gold futures for December delivery climbed 2.3% to $4,160.50 per ounce.

Gold had hit a record high of $4,381.21 on Monday but logged its steepest drop in five years the very next day.

Analysts said that this year’s 57% surge in gold prices has been driven by ongoing geopolitical risks, economic uncertainty, expectations of lower interest rates, and sustained buying by central banks.

Non-yielding assets like gold generally benefit in a low interest rate environment.

Meanwhile, JPMorgan predicted that, based on strong investor demand and continued central bank purchases averaging around 566 tonnes per quarter, gold could average $5,055 per ounce by the fourth quarter of 2026.

Among other precious metals, spot silver rose 1.6% to $49.29 per ounce, platinum gained 1.2% to $1,640.61, while palladium edged down 0.1% to $1,457.08.