Top Searches
Advertisement

Safe-Haven Rush: Gold Hits Two-Week High Amid Global Jitters

Updated: May 06, 2025 09:54

Image Source: The Hindu Business Line
Gold prices rose to a two-week high on Tuesday, driven by fresh geopolitical tensions and ongoing uncertainty in global trade, leading investors to seek refuge in the precious metal.
 
Gold (XAU/USD) rose more than 1% to about $3,382 in Asian trading, taking gains for a second day after conflicts in Ukraine and the Middle East, together with unstable US trade policy, fueled demand for safe-haven assets. Though there was some firming of the US Dollar, gold stayed on an uptrend, emphasizing its attraction against a backdrop of global uncertainty.
 
Geopolitical Tensions Support Gold
  • Ukraine (Moscow drone attacks, Russia's Kursk region strikes) and Middle East (Israeli-US attacks on Yemen following attacks on Israel) escalating fights have increased global risk, pushing investors towards gold.
  • Lack of clarity regarding US President Trump's trade policies, such as new tariffs and changing positions, contributes to market tensions and underpins safe-haven flows.
Market and Economic Drivers
  • The US Dollar was a little stronger following better-than-expected US services data, but this did not slow gold's advance, which pointed to robust safe-haven demand.
  • Investors are holding back before the two-day policy meeting of the US Federal Reserve to get some guidance on the direction of interest rates in the future.
  • US economic data in recent times (jobs and services PMI) have been mixed, adding to volatility in the market and gold's popularity.
Domestic Gold Price Trends (India)
  • Indian gold prices went up to as much as Rs 2,200 per 100 grams for 24K gold on May 5, 2025, after the recent decline.
  • 22K gold rose to Rs 8,775 per gram and 24K gold reached Rs 9,573 per gram in key cities.
  • Silver prices declined slightly, though.
Analyst Insights and Outlook
Analysts believe that gold could remain erratic but with a bullish bias provided there is a continued state of geopolitical and trade uncertainties.
 
Traders are instructed to be wary and wait for stronger signals from the Federal Reserve before taking strong positions.
 
Sources: Mitrade, Goodreturns, FXStreet, Times Now

Advertisement

STORIES YOU MAY LIKE

Image Source : BBC
Merz falls short in first round of voting for German chancellor
Image Source : Business Today
Adani Power secures contract to supply 1500 MW to Uttar Pradesh, reinforcing energy security
Image Source : StartupTalkY
Alembic Pharmaceuticals reports Q4 earnings, shares dip after profit decline
Advertisement
Image Source : LinkedIn
Univastu India secures 40.7 million rupee work order, strengthening infrastructure portfolio
Image Source : The Economic Times
UK new car registrations decline in April amid tax changes and market adjustments
Image Source: PR News
Quantum Leap in Secure Communication: Sterlite Technologies Demonstrates 100km QKD Transmission
Image Source: X (Twitter)
Bus-ted with Nostalgia: Book Chronicles Bengaluru’s BMTC Journeys
Advertisement
Live Blogs
Prabhsimran’s Power-Hitting Propels Punjab Kings to Commanding Win Over LSG in Dharamsala
From MI to RR: Akash Madhwal Swings Back with a Vengeance
IPL’s Six-Hitting Hotspots: Wankhede Nears 2,000 as Chinnaswamy Tops the Charts
Batting Beyond Limits: Prabhsimran Singh’s Historic 1000-Run Triumph for PBKS
Top Stories
Image Source : Ceramic Tiles Blog
Kajaria Ceramics reports Q4 revenue below estimates, restructures operations
Image Source : ET EnergyWorld
India's SAIL explores Mongolian coal imports with trial shipment
Image Source : Investment Guru
Bharti Airtel shares hit record high amid strong market momentum and investor confidence
Image Source : Free Press Journal
Vedant Fashions reports Q4 earnings, shares decline after profit dip
Advertisement
Advertisement

Follow WOWNEWS 24x7 on:

Copyright 2024 WOWNEWS 24x7. All rights reserved. The WOWNEWS 24x7 is not responsible for the content of external sites. Read about our approach to external linking.

Powered By Just Imagine