The price of gold bullion has rebounded to hit its highest level in two months as geopolitical uncertainty rises.
The precious metal has steadily risen in recent weeks as hopes fade for a U.S.-Iran peace deal and the stock market continues to be choppy.
The spot price of gold reached its highest level since June 5 in early trading on Aug. 11, changing hands at $4,440.00 U.S. per ounce.
Gold’s price has now risen 10% in the last 30 days as investors return to the metal amid rising demand for safe haven assets.
However, gold’s price still remains well-below the all-time high of $5,602.22 U.S. an ounce that it reached on Jan. 28 of this year.
There are also concerns that the current rebound in gold might be short lived if the U.S. Federal Reserve raises interest rates at its next policy meeting on Sept. 16.
Higher interest rates increase the opportunity cost of holding gold, which is a non-yielding asset.
Futures markets on Wall Street are currently pricing in a 52% chance of an interest-rate hike from the Fed in September, ?up from 44% a week ago.
Markets continue to watch inflation data for signs on which direction interest rates are likely to move later this year and into 2027.
Over the past 12 months, gold’s price has risen 30%.
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