Gold rush grips Asia despite near-record prices – by Ashitha Shivaprasad and Brijesh Patel (Reuters – June 11, 2024)

SINGAPORE, June 12 (Reuters) – Demand for gold in Asia is surging despite prices hovering near the record highs it hit in May, industry officials say, as buyers snap up the metal to hedge against geopolitical and economic uncertainty.

Spot gold is trading a little over $2,300 per ounce, up about 12% year-to-date and only about 6% shy of the record high it hit last month. Lower confidence in other investment options, such as real estate and equities, is also a factor behind the demand for gold, analysts say.

“When the macro-economic backdrop returns to normal, when real estate and equities are more interesting, I think that price sensitivity will return,” Ruth Crowell, chief executive of the London Bullion Market Association, told Reuters.

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