Article details
Gold prices (XAU/USD) reversed earlier losses to rise 0.58% on Thursday after hitting a six-month low of $4,023, driven by escalating US-Iran tensions and stalled Middle East peace prospects. The metal traded at $4,091 as investors sought safe-haven assets amid geopolitical risks. The conflict's unresolved nature has heightened fears of prolonged instability, which could delay diplomatic efforts and disrupt energy markets.
The rebound highlights gold's role as a traditional safe-haven during geopolitical crises. Traders are monitoring how sustained tensions might impact risk appetite and central bank policies. The US Federal Reserve's stance on interest rates and inflation data will also influence gold's trajectory in the coming weeks.
For Gulf investors, the Middle East conflict's spillover effects on oil prices and regional security could amplify volatility. Key watchpoints include further military exchanges between US and Iran, OPEC+ production decisions, and potential sanctions on energy exports. Gold's technical support at $4,050 and resistance at $4,200 will be critical for short-term direction.
