U.S.-Iran Tensions Boost Gold, Analysts See Short-Term Target of $5600

Odaily News On Wednesday, gold prices extended their gains, buoyed by safe-haven demand. Spot gold rose 2.7% at one point on Monday to $5,071.79 per ounce, with renewed geopolitical tensions between the U.S. and Iran further propelling the rally. The price had recorded its largest single-day gain since 2008 in the previous trading session. "Gold prices have recovered near the key $5,000 level... as geopolitical tensions have enhanced gold's safe-haven appeal following the U.S. military downing of an Iranian drone," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities. "Looking ahead, gold could touch $5,100 in the very near term... We expect gold to reach the $5,600 level by the end of the first half or by the end of April, and thereafter, prices will continue to rise, with our year-end target being $6,000 per ounce," Trivedi added. (Jin10)