Gold investment funds have recorded their largest four-week inflow on record, hitting $4.5 billion by February, according to Bank of America Global Research data, as investors flock to the safe-haven asset amid market uncertainty.
The precious metal traded at $2,915 per ounce on Tuesday, up 0.78%, hovering near the $2,900 level as the strong investment trend continues.
Gold prices have climbed steadily since late December, when the metal traded around $2,558, according to chart data. After reaching highs near $2,950 in mid-February, prices have entered a consolidation phase while maintaining levels above key moving averages.
Analysts attribute the surge in gold demand to growing concerns about geopolitical tensions and the potential impact of trade policies on economic growth.
Market participants remain focused on upcoming U.S. inflation data, with the Consumer Price Index due Wednesday and Producer Price Index on Thursday, which could influence Federal Reserve monetary policy decisions.
Jim Wyckoff, senior analyst at Kitco Metals, noted in a report that uncertainty in markets typically supports gold prices. “There is a slight pause in gold prices due to some mild profit-taking and a weaker stock market. However, we might see some safe-haven bids later,” he said.
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