Gold from the May contract is at a record high

The price of gold rose for another session on Tuesday due to the continued weakening of the dollar, in which the precious metal is quoted. This makes gold more attractive to investors holding strengthening currencies. An additional incentive was also the drop in US bond yields. Analysts pointed out that the 10-year breakeven rate, which reflects inflation expectations, rose to its highest level in a week on Tuesday. Gold is traditionally considered a good hedge against inflation. The geopolitical situation, primarily in the Middle East, also speaks in favor of buying the precious metal. On Monday, Israel announced a plan for a new offensive against Hamas, assuming the displacement of Palestinians and a long-term occupation of the Gaza Strip by the Israeli army. This has already sparked opposition from several countries, including China. At the close of the session on Comex, the price of gold from the leading May contract rose by 3.0 percent to USD 3,411.40 per ounce. This is the largest one-day increase in the price in three weeks and a new closing record. During three growth sessions, the price of gold rose by 6.3%. Since the beginning of the year, it has been growing by 29.75%. At the end of the session, gold from the most heavily traded, June contract was up 3.1% to USD 3,425.10, and on the cash market, the precious metal was up 2.5% to USD 3,415.73.