Gold Recovers from Seven-Week Low as Investors Eye Middle East Tensions
Gold prices edged up on Tuesday after hitting a seven-week low in the previous session. Investors are monitoring geopolitical developments and upcoming US economic data for clarity on the Federal Reserve's policy path.
The spot price of gold rose by 0.7% to $4,143.87 per ounce at around 0708 GMT. US gold futures gained 0.2% to $4,175.10.
US and Iranian officials spoke with mediators as part of a renewed effort to end seven months of war. Oil prices rose for a second consecutive session amid concerns over Middle East supply disruption.
Christopher Tahir, senior market strategist at Exness, said geopolitical developments will remain crucial for gold, as continued tensions could keep energy prices and yields elevated, while meaningful progress towards de-escalation could ease pressure.