According to Reuters, gold prices experienced a slight increase on Thursday, rebounding from recent declines. This uptick is attributed to a renewed interest in gold as a safe haven asset, driven by escalating geopolitical tensions.
Spot gold prices edged higher after a brief dip in the previous session, following a series of record highs that concluded on Tuesday. Concurrently, there was a modest rise observed in U.S. gold futures.
While recent data confirmed persistent inflationary pressures in the U.S., potentially signaling a prolonged period of high interest rates by the Federal Reserve, geopolitical uncertainties are currently exerting a stronger influence on gold prices.
Analysts suggest that although the prospect of elevated interest rates may have initially weighed on gold prices, the prevailing geopolitical unrest is mitigating any substantial downward pressure. Investors continue to perceive gold as a crucial hedge against the prevailing risks in the global landscape.
