Gold Rallies from Seven-Week Low as Investors Eye Middle East Developments
Gold prices rose on Tuesday after hitting a seven-week low in the previous session. The precious metal gained 0.7% to $4,143.87 per ounce, according to data from 0708 GMT.
The increase comes as investors assess developments in the Middle East and await US economic data for more clarity on the Federal Reserve's policy path.
Geopolitical tensions will remain crucial for gold prices, said Christopher Tahir, senior market strategist at online trading platform Exness. Elevated oil prices can fuel inflation by increasing costs across the economy, potentially prompting central banks to raise interest rates.
The US and Iranian officials spoke separately with mediators as part of a renewed effort to end seven months of war, according to officials from both countries.