Gold hits record high over $3,000 amid rising geopolitical tensions; Pound at $1.30 against weakening US dollar – business live


Gold hits record high over $3,000 amid geopolitical tensions and weakening US dollar

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

It’s been a record-breaking year for gold, as nervous investors have sought out safe-haven assets.

And this morning, the precious metal has hit a fresh all-time high above $3,000 per ounce, driven by escalating geopolitical tensions in the Middle East, trade war fears and the weakening US dollar.

Gold touched $3,017.64 per ounce, as news broke that Israeli military forces have launched widespread strikes on targets across Gaza early today, leading to fears that the shaky ceasefire in the region is over.

This means gold has climbed by 15% since the start of this year, having ended December at $2,623/ounce, adding to its 27% surge during 2024.

As this chart shows, it has now doubled over the last five years:

A chart showing the gold price since 2020 Photograph: LSEG

The recent weakness of the US dollar has also pushed up the gold price. The greenback is trading near a five-month low against a basket of other currencies, as traders worry that Donald Trump’s enthusiasm for tariffs will trigger a full-blown trade war, that could push the US into recession.

As analysts at Deutshe Bank put it:

Investors continue to rotate away from the US dollar and find perceived safe havens amidst the heightened policy uncertainty.

Linh Tran, market analyst at XS.com, reports that rising tensions in the Middle East and the escalating U.S.-China trade conflict have both driven investors toward gold as a safe investment channel, adding:

These uncertainties have not only increased demand for gold but have also pushed significant capital inflows into the precious metals market, contributing to gold reaching record-high prices.

The agenda

  • 9.30am: ONS releases changes to the UK inflation basket

  • 10am GMT: ZEW eurozone economic confidence survey

  • 12.30pm GMT: US housing starts/building permits data for February

  • 1.15pm GMT: US industrial production for February

Share

Updated at 

Key events

UK watchdog probing MHA audit of collapsed construction group ISG

Julia Kollewe

Julia Kollewe

Britain’s accounting watchdog is investigating accountancy firm MHA for its audit of the collapsed construction company ISG, in a blow to MHA’s hopes to raise £125m through a stock market flotation.

The Financial Reporting Council said it had begun an investigation of MHA’s audit of IGS’s accounts for 2022. The construction firm, which held more than £1bn of government contracts, fell into administration last September, and 2,200 workers lost their jobs. IGS, which built the velodrome for the 2012 London Olympics, had been struggling financially for some time and failed to secure a rescue deal.

Neil Hallsworth from Nottingham, who worked for ISG as a project manager for more than 15 years, told the BBC at the time that he was “gutted” and that some of the contractors were “owed a fortune”.

It was the biggest collapse in the construction sector since Carillion’s failure in 2018, and forced government officials to look for other contracts to take over ISG’s projects, including prisons upgrades and work to school buildings.

The FRC investigation into MHA’s audit comes just a day after it announced plans for a public listing to raise up to £125m, including a £6m offer to small investors. On Monday, the accounting firm, which is the UK arm of the international network Baker Tilly, said it planned to float on London’s junior market Aim in the coming weeks to raise money for technology investments such as AI and the company’s expansion. It employs 43,515 people in 143 territories and made worldwide revenues of $5.6bn last year.

MHA also said it is looking at buying up other Baker Tilly firms.

Today, the firm said:

“MHA is committed to audit quality and we will be co-operating fully with the FRC as part of this investigation.”

Share

Updated at 





Source link

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe

Latest Articles