Gold hits record high of over 3,000 US dollars, which are driven by rising geopolitical tensions

The pound is higher compared to the dollar in the early European trade and touches 1.30 US dollars, a level that has not been injured since November.

The increase is largely attributed to a weaker dollar that has come under pressure in the past few weeks. The US dollar index (DX-Y.NYB), which pursues the Greenback against a basket with six main currencies, has decreased by almost 6% compared to a two-year highlight, which in mid-January in view of the concern that Donald Trump's tariffs and retaliation from other countries could bring the US economy into recession.

Sterling's volatility is expected this week, especially at the upcoming political meeting of the Bank of England on Thursday.

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According to the interest rates, investors are very observing, the expectations that the central bank will keep interest rates at 4.5%unchanged.

In the meantime, Sterling was lower on Tuesday morning against the euro (Gbpeur = X) at € 1.1870.

Despite the forecasts that predict the challenges for the euro this year, the currency has recently gained ground. An essential factor for the recovery of the euro was expected to increase the European defense spending that supported the only currency.

The gold prices have reached a new all-time high over $ 3,000 per ounce, which was driven by escalating geopolitical tensions in the Middle East, the fears of a longer trade war and a weakening dollar.

Spot Gold rose by 1.3% to $ 3,025.43 per ounce, while the gold futures rose by 0.8% to $ 3,028.80.

This has been a profit of 15% for the precious metal since the beginning of the year after it had closed December at $ 2,623 per ounce, which was increased to an increase of 27% in 2024.

The latest decline in the dollar has played an important role in writing gold prices to new heights. As analysts from Deutsche Bank found, “investors continue to turn off the US dollar and are looking for perceived safe ports in the middle of increased political uncertainty.”

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Linh Tran, market analyst at Xs.com, attributed the increase in gold prices to rising tensions in the Middle East and the ongoing US China trade conflict. Tran said: “These uncertainties not only increased the demand for gold, but also came into the precious metal market and contribute to the fact that gold achieved record prices.”

The Australian bank assumes that gold has to continue to climb. You say: “[For gold] We keep our optimistic view in the middle of strong tailwinds of escalating geopolitical and trade voltages, the relaxation of monetary policy and the strong purchase of the central bank. “