Gold prices have soared to unprecedented levels, driven by investors flocking to secure assets in light of the upcoming budget and ongoing global geopolitical tensions.
Today, the LBMA gold price achieved a new milestone, reaching $2,083.15, breaking its previous high of $2,078.40 set in December.
While there is no singular reason identified for the surge in gold prices, the market has seen a significant uptake in investments in metal. Contributing factors include escalating tensions in the Middle East and inflation concerns stemming from the shipping crisis in the Red Sea.
Excluding a brief period in mid-February, gold prices have consistently stayed above the $2,000 mark per ounce, largely due to uncertainties surrounding interest rate cuts.
Furthermore, with the Chancellor set to reveal the Budget on Wednesday, traders are increasingly investing in safe-haven assets like gold. This trend is accentuated by Jeremy Hunt’s efforts to create space for potential pre-election tax reductions.
