Gold extends gains amid ongoing geopolitical tensions

Gold prices continued to soar today, April 3, against the backdrop of the ongoing Ukrainian attacks on Russian oil refineries via drones, despite investors' concerns about inflation and the prospects for US monetary policy after a series of strong economic data.

Bullion for June delivery increased 0.33% to $2,289.40 per ounce at 11:10 am Makkah time, after rising to $2,281.80/ounce at the end of yesterday’s session to hit the fourth straight record high. However, spot prices plunged by 0.49% to $2,269.39 an ounce.

Elsewhere, silver futures for May delivery jumped by 1.72% to $26.37 per ounce, while platinum spot prices tumbled 0.89% to $916.78 an ounce.

“Gold continues to receive safe-haven flows as Ukraine continues to attack Russia’s oil infrastructure, to the point it is ignoring rising U.S. yields and the prospects of the Fed not cutting rates in June,” City Index Senior Analyst Matt Simpson said, Reuters reported.

He highlighted that an increase in commodity prices, in general, raises the risk of another inflationary wave, meaning that investors may now be hedging against higher prices.