After the gold price rallied sharply from a low of $1,985 an ounce on February 14 to $446, or about 22.5%, within two months, the rally has paused considerably in the past three weeks. Starting from a new all-time high of $2,431, rapid profit taking in the form of two major downward spurts has resulted in a “hangover.”

China's net gold imports into China via Hong Kong rose 40% in March compared to February, data from the Hong Kong Census and Statistics Bureau revealed last Thursday.

Following the escalation of tensions in the Middle East, rumors of an impending rise in gold prices surfaced early last week, and Turkish citizen Faruk Mutlu decided to seize the opportunity.

The recent rise in gold prices is largely attributed to geopolitical tensions and economic uncertainty, but Lobo Tiggre, analyst and editor of Independent Speculator magazine, says they are not the main catalysts behind the price rally in the gold market.

The gold market is not paying attention to inflation and interest rates in the US because investors are not concerned about opportunity costs in a world with unprecedented geopolitical and economic uncertainty, says a market strategist.