WGC Reports Gold Gains Driven by Geopolitical Risks and Inflation Pressures

SEATTLE (Scrap Monster): Global financial markets remained volatile last week as escalating tensions surrounding the Middle East conflict continued to shape investor sentiment, said the World Gold Council (WGC) Weekly Market Report.

Macroeconomic data pointed to rising inflationary pressures alongside slowing economic activity across major economies. In the U.S., inflation ticked higher even as services activity and factory orders weakened, while Europe also reported moderated growth. In Asia, China saw a rise in producer prices, and the Reserve Bank of India held interest rates steady but raised its inflation outlook.

Despite uncertainty, global equities posted gains, U.S. Treasury yields remained largely stable, and the U.S. dollar weakened. Oil prices initially declined but saw a renewed surge, with Brent Crude Oil rising about 8%, intensifying concerns over stagflation and consumer strain.

Amid this backdrop, gold prices strengthened as investors sought safe-haven assets. The LBMA Gold Price PM climbed 2.9% to $4,774 per ounce, pushing its year-to-date gains above 9%. Continued geopolitical risks, including tensions around the Strait of Hormuz, have sustained demand for gold-backed ETFs and bullish market positioning, reinforcing its appeal despite ongoing market volatility.

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