Gold surges above $5,000 per ounce amid rising Iran tensions
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| Gold surges above $5,000 per ounce |
BREAKING: Gold surges above $5,000 per ounce amid rising tensions with Iran, a Fed independence crisis, and strong demand. Here are the key drivers behind the recent rally in precious metal prices:
1. The Federal Reserve "Independence Crisis": Investors are concerned about Fed independence. DOJ has opened a criminal investigation into Fed Chair Jerome Powell over testimony regarding a headquarters renovation. Investors are fleeing to gold amid fears about the independence of the U.S. central bank, which traditionally underpins the dollar's stability.
2. Escalating Iran Tensions: Gold is the world's primary "safe-haven" asset, and several global hotspots are driving demand. There are speculations of potential U.S. military intervention regarding Iran, which has caused a sudden spike in defensive buying.
3. Structural Central Bank Demand: Central banks, particularly in China, India, and other emerging markets, have shifted from "opportunistic" buyers to "conviction" holders. Central banks are expected to purchase roughly 850 tonnes of gold in 2026, providing a high "price floor" that prevents significant dips.
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