Gold prices surged to an intraday high of $4,171 per troy ounce on July 22, driven by safe-haven demand amid ongoing geopolitical tensions in the Middle East. This marked a $95 increase from the previous session and pushed gold's weekly gain to 3.4%, the largest in recent weeks, according to livemint.com.
The rally in gold was supported by a softer U.S. dollar and technical buying as investors sought refuge from uncertainty. Spot gold rose 1.7% to $4,145.24 per ounce by early afternoon on July 22, reaching its highest level since July 7 at $4,165.87 per ounce. Market participants also awaited the upcoming U.S. Federal Reserve interest rate decision, which added to cautious sentiment, per livemint.com.
This price movement reflects heightened demand for precious metals as safe-haven assets amid geopolitical risks and macroeconomic factors. The increase in gold prices follows a broader trend of investors moving away from riskier assets. Gold's performance this week stands out as it approaches a two-week peak, highlighting its role in portfolio diversification during periods of market stress, according to livemint.com.
Silver prices also extended their winning streak, reaching $61.70 per ounce on July 22, further indicating strong demand for precious metals. The Federal Open Market Committee's interest rate decision scheduled for next week remains a key event that could influence precious metal prices and broader market dynamics, as reported by livemint.com.