Gold Soars as Bearish Momentum Builds Amid Ongoing US-Iran Conflict
The ongoing conflict between the US and Iran has led to increased bearish momentum in gold prices. The US-Iran conflict has now reached its 178th day, with tensions escalating in August when Yemen's Iran-backed Houthis declared a naval blockade against Saudi Arabia.
Despite attempts by gold to retest levels from May 14, the metal has continued to rise, gaining over 5% last week and extending its third consecutive weekly advance. On Monday, gold briefly traded above $4,620 an ounce, reaching its highest level in three months.
The US Treasury's decision to ramp up purchases of longer-dated government debt has pushed bond yields lower and revived investor interest in hard assets like gold. This move has raised questions about policymakers' willingness to manage borrowing costs rather than allow the bond market to determine them freely.