Gold has retreated sharply from its March highs due to the higher rates and a stronger dollar. The high rates have restricted gold’s rise beyond the $1,800 per ounce mark. However, according to RBC Capital Markets, heightened geopolitical tensions and safe-haven undercurrents could propel gold prices above $2,030 an ounce.
Conventionally, gold is considered a store of value and a safe haven asset. The yellow metal is a physical commodity with a restricted quantity, allowing it to retain its value even during economic turmoil. Gold is also seen as an inflation hedge.
