Gold prices hit their highest level in more than three months on Tuesday as continued conflict in the Middle East and ongoing political uncertainty fuelled the latest rally in the precious metal.
The metal has risen by about 15% so far during August, reaching $4,651 an ounce during Asian trading hours on Tuesday, before falling back slightly. This put gold on track for its best monthly performance in almost 30 years, since September 1999.
The price of gold began to rise in early August amid optimism that the U.S. and Iran were getting closer to restoring a ceasefire in the Middle East and reopening the strait of Hormuz. While this did not happen, the price of gold has continued to climb.
The price topped $4,000 an ounce for the first time last October, before passing $5,000 in January and reaching a record high at the end of that month, partly fuelled by shifts in U.S. policy, as well as political uncertainty elsewhere.
