Gold Pulls Back Amid Rising Geopolitical Tensions

Gold prices pulled back from their highest levels in over two weeks to around $4,636 after a strong rally earlier this week. Despite the decline, analysts remain bullish on the precious metal's prospects.

The US dollar has regained some of its lost ground against major currencies as investors become more risk-averse amid rising geopolitical tensions and concerns about inflation. The imposition of new sanctions by the US on Iran's financial connections has driven up oil prices, which in turn has boosted the appeal of safe-haven assets like the US dollar.

However, analysts at Societe Generale suggest that gold may have broken out of a small base formation and reclaimed its 200-day moving average, indicating a resurgence of upward momentum. From here, they expect potential hurdles at $4,730-$4,770 before reaching the April peak at $4,890.