Gold climbed above $2,660 per ounce on Tuesday, marking its second consecutive session of gains, driven by a combination of China's policy shift and rising geopolitical tensions in the Middle East.
Gold rises for second straight session
On Monday, China’s ruling Politburo announced plans to loosen monetary policy for the first time in 14 years in an effort to stimulate the economy, which boosted market sentiment across various commodities. This move signaled increased support for economic growth, particularly amid challenges in the domestic market. Additionally, China's central bank resumed gold purchases for its reserves for the first time in seven months, further enhancing demand for the precious metal. Meanwhile, geopolitical risks, especially the escalating instability surrounding the Syrian government, heightened investors' appetite for safe-haven assets like gold.
Gold boosted by uncertainty in China
With uncertainty surrounding both China’s economic recovery and global geopolitical developments, investors are flocking to gold as a secure store of value. Market attention now shifts to upcoming US inflation data, which is expected later this week. These reports could play a crucial role in shaping the Federal Reserve’s monetary policy outlook and have a significant impact on global markets.
