The price of gold surged to unprecedented levels on Monday after the tragic death of Iranian President Ebrahim Raisi in a helicopter crash, driving investors to seek refuge in the precious metal known for its safe-haven appeal.
Alongside gold, copper also reached an all-time high, while silver soared to its highest level in over 11 years, buoyed by an optimistic economic outlook.
Gold had been steadily climbing throughout the year, reaching a series of record highs, further propelled by the recent geopolitical turmoil following President Raisi’s demise. The surge in gold and copper prices was also fueled by expectations of impending interest rate cuts by the US Federal Reserve amid cooling inflation.
The global stock markets, including those in Asia, Europe, and Wall Street, rallied at the start of the week, with several indices hitting historic peaks. The weakening US dollar added to the momentum, enhancing the appeal of dollar-denominated assets like gold and copper.
Analysts attributed the market’s bullish sentiment to China’s plans to bolster its struggling property sector, further boosting confidence in metals tied to economic growth. Despite an initial spike in oil prices in response to the Iran news, prices later dipped as attention turned to the Federal Reserve’s upcoming policy minutes release and corporate earnings reports, notably Nvidia’s highly anticipated results on Wednesday.