Gold Prices Steady Amid Market Volatility and Geopolitical Uncertainty

The price of gold remained stable against all major currencies on Tuesday, trading at $2315 per Troy ounce in London. This occurred as longer-term interest rates eased despite inflation warnings from the central bank of Australia, and global stock markets rose following New York's 30th new all-time closing high of 2024.

Gold prices in US dollars set 18 new record London 3pm benchmarks within 11 weeks up to May 21st, peaking at $2427, marking its strongest run since the summer of 2011 during the US debt downgrade, Euro currency crisis, and severe English riots.

In contrast, as gold peaked in late May this year, the S&P 500 index of US equities also reached a new all-time high and has since gained 2.8%, while gold has dropped 4.7%.

Concerns over potential geopolitical risks following the European elections are likely to support gold. Additionally, fresh sanctions on Chinese products could also provide support.

Uncertainty is increasingly driving financial markets, wiped $210 billion from the French stock market and saw European bonds experience their worst week since the 2011 European crisis.

Gold traders and other investors will continue to focus on political developments, while central-bank decisions remain crucial following the Federal Reserve's dovish stance.