The price of gold hit its highest level in four weeks as the ongoing Middle East conflict continues to intensify. Spot gold rose by 1.1% to $1,943.57 an ounce on Wednesday morning while the Bloomberg Dollar Spot Index remained relatively unchanged. Silver, platinum, and palladium advanced as well.
Gold rose despite other commodities and stocks embarking on a downward trajectory. With US retail sales remaining resilient in the face of stubborn inflation, the Federal Reserve has been given more reason not to give up on its tight fiscal policy. Usually, rising interest rates signal a decline in gold prices.
Since the terrorist attack carried out against Israel by Hamas on October 7, the price of bullion has rocketed over 6% upwards. Before the outbreak of the conflict, the metal had been trading near a seven-month low.