Gold prices soar 1% to surpass $2,400 for first time ever

Gold prices consolidated their gains today, April 16, supported by the increasing demand for safe havens in light of simmering Middle East tensions.

Bullion for June delivery jumped by more than 1%, or $24.8, to close at $2,407.80 per ounce, the 10th record level to be posted since the beginning of April, during which the most active contract achieved gains of about 7.55%.

Likewise, the US dollar index, which gauges the greenback's strength against a basket of six currencies, added 0.1% to stand at 106.33 points at 09:16 pm Makkah time.

“The market is in pause mode and waiting for the other shoe to drop on this Israeli-Iran confrontation. You will see another rally in gold if the situation escalates,” said Jim Wyckoff, senior analyst at Kitco Metals.

Elsewhere, Deutsche Bank forecasts gold prices at $2,400 per ounce by year-end and at $2,600 in December 2025.

“We think gold is likely to remain on a strong footing as any profit-taking by early investors would be replaced by investment from those who have so far not participated in the move,” the bank added in a recent note.