Gold Hits Record High as Iran Shock Triggers Safe Haven Investment

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Gold Hits Record High as Iran Shock Triggers Safe Haven Investment

KATHMANDU: The price of gold hit a record high in the international market Monday as the shock death of Iranian President Ebrahim Raisi in a helicopter crash boosted support for the precious metal seen as a safe haven investment.

According to AFP, copper also struck an all-time peak and silver jumped to the highest level in more than 11 years -- with markets generally gaining from a brighter economic outlook.

Gold had already hit a series of record highs this year and Nepal was not an exception.

The country also witnessed a record-high price of gold on Monday with the precious yellow metal traded at Rs 141,800 per tola (11.66 grams) before shedding Rs 1200 per tola on Tuesday.

Asian and European stock markets began the week higher, having recently struck all-time peaks along with indices on Wall Street.

The metals are priced in the dollar, which has come under pressure recently from expectations that the US Federal Reserve will soon start to cut interest rates as inflation cools.

Gold struck a record $2,450.07 an ounce in the international market on Monday, while copper's all-time high stood at $11,104 per tonne.

Raisi was confirmed dead on Monday after search and rescue teams found his crashed helicopter in a fog-shrouded western mountain region, sparking mourning in the Islamic republic, AFP added.

Foreign countries had been closely following the search at a time of high regional tensions over the Gaza war raging between Israel and Hamas since October 7.

"Gold and copper have hit record highs, (and) silver jumped to an 11-year high... after the death of Iran's president in a helicopter crash," AFP quoted Neil Wilson, chief market analyst at Finalto trading group, as saying.

"There is a clear geopolitical premium since October 7th," he said, adding that "expectations the Fed will cut rates soon is helping".

Analysts said market sentiment was boosted additionally by China's plan to support its struggling property sector.

The positive start to the week for equities came after Wall Street's Dow index ended above 40,000 points for the first time on Friday.

Oil prices dipped after initially jumping on the Iran news, added the news agency.

Investors are looking to the release Wednesday of minutes from the Federal Reserve's May policy decision, hoping for some insight into the thinking of decision-makers.

The release comes after data last week showed US inflation easing in April, reviving hopes the central bank would cut interest rates twice this year.



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