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Gold prices edged higher in early trading but remained confined within a narrow range as market participants awaited developments on potential de-escalation efforts in the Iran-US conflict. The precious metal rose to $2,345 per troy ounce, driven by renewed safe-haven demand amid geopolitical tensions, though profit-taking limited further gains. Analysts noted that while the Iran situation remains a key driver, central bank purchases and the US dollar's mixed performance also influenced the price action. For traders, the rangebound movement highlights the delicate balance between geopolitical risks and macroeconomic factors. A de-escalation in Iran could reduce safe-haven demand, potentially capping gold's upside, while persistent dollar weakness might support longer-term gains. Technical indicators show the metal is consolidating near critical resistance levels, with a break above $2,360 seen as pivotal for the next phase of the trend. Looking ahead, investors should monitor both geopolitical developments in the Middle East and upcoming US inflation data, which could impact the Federal Reserve's policy trajectory. For Gulf investors, gold's role as a diversification tool remains relevant amid regional uncertainties, though volatility may persist until clearer signals emerge from either front.
