Gold prices rise globally amid Middle East tensions
Global gold prices rose during Friday’s trading session, supported by strong demand for safe-haven assets amid Middle East tensions and increasing expectations regarding the U.S. Federal Reserve interest rate policy.
Gold futures increased by 0.3 percent to USD 2,375.4 per ounce.
Spot gold rose by 0.1 percent to USD 2,360.95 per ounce at 03:44 GMT, after reaching a two-week high in the previous session. U.S. gold futures climbed by 0.2 percent to USD 2,374.60.
In light of current geopolitical tensions, Kelvin Wong, Senior Market Analyst for Asia Pacific at OANDA, confirmed that gold is rising primarily due to escalating geopolitical tensions.
He noted that the market is now anticipating a possible interest rate cut after September, which could support gold prices and keep them stable above the USD 2,300 level.
Wong explained that a lower interest rate reduces the opportunity cost of holding non-yielding investments like gold.
