TNews – In a remarkable turn of events, gold has staged a dramatic comeback, surging past the $1,900 mark after hovering around $1,700 per ounce. The recent crisis in the Middle East has triggered a significant rally, culminating in a remarkable price shift for the precious metal.
The most actively traded gold futures on the Comex in New York for December delivery closed with a remarkable 3.34% jump at $1,945.90 per ounce at the end of Friday’s session on October 14th. For the week, gold futures saw a staggering increase of 5.46%, marking the most substantial weekly gain since March.
Spot gold prices, closely watched by many traders, surged by 3.42% to $1,932.82 per ounce. Just last Friday, spot prices, which reflect real-time gold trading, dipped to an intraday low of $1,810.10, standing barely $10 above the $1,700 range.
The surge on Friday marked the most significant one-day gain for spot gold since March 17th. Furthermore, the weekly gain, rounding up to 5% this week, is the most substantial increase since March.
The recent surge in gold prices unfolded following a stern warning from the Israeli government on Thursday evening, urging over one million people in Northern Gaza to evacuate the area due to an escalating conflict with Hamas. There have also been reports suggesting that Israel is preparing for a significant ground offensive in Gaza.
“The escalating chaos in the Middle East continues to drive safe-haven demand for gold, with a 2% rally over the weekend. This also exerts bearish pressure on the market,” wrote Neils Christensen on kitco.com, a gold trading website.
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What’s even more astonishing is that this gold rally occurred while the US dollar index, or DXY, recorded back-to-back gains for two consecutive days. The greenback had been strengthening for the past three months, with a brief interruption last week. Traditionally, gold and the US dollar move in opposite directions.
