Gold prices surged to a record high of nearly $2,300 as a result of the earthquake in Taiwan reducing risk appetite

Following the terrible earthquake in Taiwan, demand for safe haven assets surged, and uncertainty surrounding U.S. interest rates further fueled demand for gold, which helped prices of the metal rise in Asian trade on Wednesday and stay close to record highs.

An earthquake in Taiwan has damaged the island’s infrastructure and main chip production facilities, while also causing tsunami warnings in parts of Japan, further impacting risk appetite.

$2,300 is the target price for gold notwithstanding Fed pressure. Gold prices rose despite concerns about higher U.S. interest rates. Some Fed officials hinted that lower interest rates might be postponed due to persistent inflation and a robust labor market.

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