Gold extends record rise driven by speculative buying

Gold prices continued their record rally today, April 8, supported by speculative buying and continued tensions in the Middle East, which overshadowed strong US job growth in March.

The gold spot prices edged up 0.3% to $2,335.73 per ounce at 06:46 GMT.

Gold futures also rose 0.4% to $2,354.50per ounce.

Silver spot prices gained 1.1% to $27.77 per ounce. Platinum spot prices also went up 0.1% to $927.78.

In addition, palladium added 0.2% to $1,001.76 per ounce.

“If you look at futures pricing, we’re seeing indications now that there’s a bit of momentum chasing in the market...to an extent we’re seeing a little bit of excessive optimism about the outlook for gold at the current level,” said Kyle Rodda, a financial market analyst at Capital.com.

Geopolitical tensions in the Middle East could be another driving force for gold, Rodda added.

Strong central bank buying, safe-haven inflows amid elevated geopolitical risks, and demand from momentum-following funds have fueled bullion’s 12% gain so far this year.

US job growth blew past expectations in March, suggesting the economy ended the first quarter on solid ground and potentially delaying anticipated Federal Reserve interest rate cuts this year.