Gold prices rose!

Spot gold rose above $4,430, ending a three-day losing streak. The price of gold was supported by a weaker US dollar and rising tensions in the Middle East. The intensification of conflicts in the Middle East has increased concerns over energy prices. This has once again raised risks that global inflation could accelerate. Higher inflation pressures could strengthen expectations that interest rates will remain elevated, which is considered a negative factor for gold as it does not generate interest income.

However, the weakening US dollar has supported gold. A weaker dollar makes gold more attractive to investors holding other currencies. Continued gold purchases by central banks are also among the key factors supporting the precious metal’s price. The US Federal Reserve’s interest rate policy remains in focus. Comments from Fed officials and labor market data could influence the next direction of gold prices. Market volatility remains high amid Kevin Warsh’s hawkish stance. Investors are closely monitoring movements in the dollar and expectations for interest rates.