By Yara Abi Farraj

Global gold prices continue record surge to $2,353.79, Saudi Arabia rates climb

Gold prices remained undeterred despite the robust U.S. job growth in March

Swiss bank UBS revised its year-end target for bullion to $2,250 per ounce, citing firmer demand

Gold prices continued their upward trajectory on Monday, hitting new record highs due to speculative buying and persistent tensions in the Middle East. This has overshadowed the impact of the strong U.S. payrolls number last week.

In Saudi Arabia, twenty-four-carat gold climbed 0.15 percent to SAR281.63 per gram and SAR8,759.59 per ounce.

Globally, spot gold rose 0.38 percent to $2,338.52 per ounce, as of 7:25 GMT, and hit a record high of $2,353.79 per ounce earlier in the session. Meanwhile, U.S. gold futures gained 0.42 percent, recording $2,355.50.

Factors fueling surge

Geopolitical tensions in the Middle East served as a significant catalyst for the surge in gold prices. Analysts believe that uncertainties in the region have further bolstered gold’s appeal as a safe-haven asset. Several other factors have also contributed to gold’s impressive 12 percent gain so far this year. Strong central bank buying, inflows into safe-haven assets amidst heightened geopolitical risks, and increased demand from momentum-following funds have all played a pivotal role in fueling bullion’s rally.

U.S. job growth

Despite the robust U.S. job growth in March, which surpassed expectations and hinted at a solid economic performance in the first quarter, gold prices remained undeterred. Analysts suggest that the strong job market may delay Federal Reserve interest rate cuts.

Analysts expressed caution amidst the ongoing rally in gold prices, anticipating potential volatility ahead. They remarked that as the gold prices continue to climb, the market may see some profit-taking from larger investors. This could lead to bearish volatility in the precious metals market.

Read: Oil prices decline as Middle East tensions ease: Brent crude falls below $90

UBS raises year-end target

Swiss bank UBS revised its year-end target for bullion to $2,250 per ounce, citing firmer demand as it anticipates an increase in exchange-traded-fund (ETF) buying. The bank also expects a surge in gold ETF holdings once the Federal Reserve begins cutting interest rates around mid-year.

Other precious metals

While the rally in gold prices captured headlines, other precious metals also witnessed gains. Spot silver rose by 1.1 percent to $27.77 per ounce, platinum edged 0.1 percent higher to $927.78, and palladium gained 0.2 percent to $1,001.76.

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