Gold Gains Slightly, Middle East Escalation Limits Gains
Gold prices rebounded in early European trading, but gains were restrained by escalating tensions in the Middle East, which have driven up oil prices and fueled inflation concerns. Gold futures in New York rose around 0.6% to US$4,560.50 per troy ounce.
Analysts noted that buying emerged following the previous sell-off triggered by the re-escalation of conflicts in the region. Investors took advantage of the price correction to re-enter the market, driving a limited recovery in the precious metal.
However, gold's gains have not been able to sustain significant gains. The surge in oil prices and rising US government bond yields have reinforced expectations that the Federal Reserve may need to maintain a tight monetary policy for longer or even raise interest rates. This has put pressure on non-yielding gold.
In other metals markets, silver also gained around 0.4% to US$73.80 per ounce, while platinum rose 1.3% to US$1,987.50 per ounce. However, the future direction of gold's movement remains highly dependent on geopolitical dynamics and expectations of US interest rate policy.
Source: Newsmaker.id
