Gold Stagnates Amid Strong US Dollar, Iran Tensions
Gold prices struggled to recover from their six-week low on Thursday as the US Dollar maintained its post-Fed gains. The precious metal failed to break above $4,300, remaining close to its near-six week low touched the previous day.
The strong US Dollar was supported by the Federal Reserve's hawkish outlook following its September policy meeting, where it raised interest rates for the first time since 2023. Fed Chair Kevin Warsh attributed the decision to a strengthening economy and persistent inflation risks, particularly due to high energy prices.
Middle East tensions also contributed to the safe-haven demand for the US Dollar, which has been trading at its highest level since late July. The escalation of fighting between Saudi Arabia and Iran-backed Houthi rebels in Yemen kept the geopolitical risk premium in play, supporting oil prices and the Greenback.