Gold prices rose modestly on Thursday, supported by escalating geopolitical tensions in the Middle East that spurred demand for safe-haven assets. However, gains were partially offset by the U.S. Federal Reserve’s restrained outlook on interest rate cuts.
According to Bloomberg data, spot gold climbed 0.2% to $3,376.48 per ounce. In contrast, U.S. gold futures slipped 0.4%, settling at $3,393.70 per ounce.
The uptick in gold prices comes as investors seek shelter from heightened uncertainty in the Middle East, where the potential for further conflict has rattled global markets. Gold, often viewed as a store of value during times of geopolitical instability, benefited from renewed investor interest.
Meanwhile, the Federal Reserve’s decision to maintain its benchmark interest rate and signal a cautious path toward monetary easing continues to weigh on broader market sentiment. The central bank’s hawkish tone has lent support to the U.S. dollar, which can temper demand for non-yielding assets like gold.
In other precious metals, spot silver dipped 0.2% to $36.66 per ounce. Platinum advanced 1.5% to $1,342.36, while palladium added 0.6% to reach $1,055.18.
Investors will continue to monitor developments in the Middle East and closely watch upcoming U.S. economic data for further clues on the Fed’s monetary policy trajectory.
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