On Monday, gold prices are showing a decline as investors take profits following a sharp increase in value driven by escalating tensions between Israel and Iran. Additionally, market participants are focused on anticipating decisions from central banks regarding future monetary policy.
This is reported by Finway
Gold Price Dynamics
As of 06:34 GMT (09:34 Kyiv time), the spot price of gold has fallen by 0.5% to $3414.32 per ounce. Earlier during the trading session, the value of the precious metal reached its highest level since April 22. U.S. gold futures also lost 0.5% and are trading at $3434.80 per ounce.
“The collective premium for political risk, which is rising due to the Iran-Israel conflict at this moment, has increased demand for gold as a safe haven,” said Kelvin Wong, senior market analyst for the Asia-Pacific region at OANDA.
Gold — The Second Most Important Reserve Asset
Gold has now surpassed the euro and ranks second among the reserve assets of central banks worldwide. Its popularity has surged in response to record purchases and a significant increase in value, as well as heightened demand as a hedge against potential sanctions.
According to the European Central Bank, in 2024, the structure of global official reserves looked as follows:
- U.S. dollar — 46%;
- Gold — 20%;
- Euro — 16%.
Recent data indicates that gold and foreign exchange reserves of central banks, which peaked at 38,000 tons in the mid-1960s, have again increased in 2024, reaching 36,000 tons.