Gold Edges Up Amid Dollar Weakness and Mideast Tensions
Gold prices rose on Wednesday as the US dollar remained muted, making metals more affordable for holders of other currencies. Spot gold increased by 0.4% to $4,372.19 per ounce, while US gold futures lost 0.5% at $4,416.00.
The market remains focused on the interest-rate outlook due to upcoming inflation data and renewed tensions between the US and Iran. 'In the gold market, there is a tug of war in the short term between the bulls and the bears. We may see this kind of movement until the end of this week, when the CPI report is released,' said Kelvin Wong, senior market analyst at OANDA.
The Middle East conflict intensified with Iranian-backed Houthis launching strikes on Saudi cities, while US forces hit multiple Iranian oil tankers and Iran struck a US base in Jordan. Brent crude prices jumped for a fourth straight session, putting upward pressure on inflation due to higher energy costs filtering through the broader economy.