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The price of the February contract for gold on the CME exchange increased by 2.37% to $2,067.15 per troy ounce as of the evening of January 12. The previous time gold was traded at this level was on January 5, 2024.
The reason for the rise in gold
Gold prices rose due to market concerns about the escalation of the conflict in the Middle East, writes CNBC.
Increased geopolitical risks have prompted investors to use traditional instruments, and demand for the precious metal has increased.
As the publication notes, the rise in gold prices occurs despite stronger inflation in the United States than expected, data for which was published on Thursday, January 11.
“Gold rises in price amid ongoing geopolitical conflict in the Middle East… Despite a stronger-than-expected consumer price index, the price of gold today has recovered, increased and is likely to continue to rise “, CNBC quotes Kunal Shah, head of the research department of Nirmal Bang Commodities in Mumbai.
Earlier, the Ministry of Finance wrote that the United States and Great Britain said they carried out air strikes and seas against Houthi military targets in Yemen in response to the group's attacks on ships in the Red Sea.
The Houthis carried out a large-scale attack on ships with drones and missiles. The US military repelled the attack, but shipping companies remain wary of sending their ships through the Red Sea for security reasons.