The price of gold has reached a high: at noon the price of a troy ounce (about 31.1 grams) reached a maximum of $2,400.67.

The commodity, considered a safe haven for investments, was boosted by, among other things, tensions in the Middle East. Silver was also trading at its highest level since February 2021.

Central banks are buying more and more gold

Gold, the precious metal, has risen sharply this year, dragging silver with it. According to traders, central banks, including China's, are increasingly buying gold. Rising geopolitical risks in the Middle East and Ukraine also provided support. Additionally, investors were weighing the potential scope of interest rate cuts by the Federal Reserve throughout 2024, although still-elevated US inflation data recently clouded these prospects.

“The gold price rally only briefly lost steam after US inflation data beat expectations,” commented Thu Lan Nguyen and Carsten Fritsch of Commerzbank. “Given that only US data of the second series will be published next week, it cannot be assumed that the precious metal will come under further pressure for the time being.”

Other metals such as platinum and palladium also rose despite the strength of the US dollar. A stronger U.S. currency is often a headwind for dollar commodity prices because it can dampen interest from foreign buyers.

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