Gold Prices Rise as Demand for Safe Haven Increases Amid Geopolitical Tensions

Gold prices recorded a significant increase during trading on Tuesday, driven by continued strong demand for safe havens amid rising geopolitical uncertainty globally, while silver prices approached their all-time highs.

According to market data, gold rose in spot transactions by 1% to reach $5065.07 per ounce by 03:29 GMT, after having recorded a historic high of $5110.50 per ounce during yesterday's session.

In contrast, U.S. gold futures for February delivery fell by 0.4% to $5059.90 per ounce, in a natural corrective move following the strong gains the precious metal has achieved recently.

Gold Above $5100 for the First Time

Gold prices surpassed the $5100 per ounce mark for the first time in history during the previous session, as investors sought to hedge against risks associated with global political and economic tensions, and fluctuations in financial markets.

Supporting Factors for Gains

Analysts believe that the ongoing geopolitical disruptions, along with fears of a global economic slowdown, are driving investors to increase their holdings of gold as a traditional store of value, enhancing the prospects for it to remain at elevated levels in the upcoming period.
Investors are closely monitoring decisions from global central banks and developments in monetary policy, as they have a direct impact on the trends of gold prices and precious metals in general.