Gold Prices Soar to Record High Amid Geopolitical Tensions and Metal Rally

Gold prices reached an all-time high in Asian trading on Monday, driven by rising geopolitical tensions in the Middle East that increased demand for safe-haven assets. The precious metal surged nearly 1% to a peak of $2,440.56 an ounce, while June contracts climbed to a record $2,444.55 an ounce.

### Focus on Middle East Stability After Iranian Helicopter Incident

Over the weekend, reports emerged of a helicopter carrying Iranian President Ebrahim Raisi and his foreign minister crashing due to adverse weather conditions. Rescue operations were initiated, but Iranian officials indicated that their lives were at risk.

Raisi has been seen as a potential successor to Iran’s supreme leadership, noted for his hardline stance on domestic protests and stricter morality enforcement. Gold prices had previously soared to unprecedented levels in April amid fears of conflict between Israel and Iran, despite such developments not materializing. However, the renewed threat of instability in the region is once again fueling demands for gold.

The situation is further complicated by ongoing strikes by Israel against Gaza, sustaining high tensions in the area. Additionally, renewed military engagements between Russia and Ukraine over the weekend have also heightened demand for safe-haven assets, as both nations exchanged strikes.

### Gold and Precious Metals Rally Amid Broader Market Gains

Other precious metals experienced gains on Monday as well, with silver prices rising 0.2% to $1,096.50 an ounce and platinum jumping 3.2% to an 11-year peak of $32.285 an ounce. The overall performance of metal prices has been supported by growing expectations for a U.S. interest rate cut this year, along with anticipated increased demand and tighter supplies, particularly in industrial metals.

Attention this week will likely center on further insights from the Federal Reserve, especially in light of some softer U.S. inflation figures for April, which have intensified hopes that the central bank may commence rate reductions as early as September.