Geopolitical Tensions Ease and Gold Prices Dip
Gold edged lower as geopolitical tensions eased in the Middle East, paring haven demand, and traders looked ahead to US data that will shed light on the outlook for monetary policy.
Bullion traded just below $2,377 an ounce after a five-week rally, the longest such streak in more than a year, during which prices hit a record. While Israel and Iran have traded strikes, raising concerns about an all-out-war in the region, Tehran has played down the impact and significance of Israel’s recent attack, and also dismissed the low success rate seen in its own assault.
Market Focus on US Data and Monetary Policy Outlook
Traders are now turning their attention to upcoming US data releases to gauge the economic situation and its potential impact on monetary policy decisions. This shift in focus from geopolitical tensions to economic indicators is influencing gold prices as investors assess the broader market sentiment.
Iran’s Response and Gold Price Movement
Iran’s reaction to recent events in the Middle East has also contributed to the easing of gold prices. By downplaying the impact of Israel’s attacks and highlighting the limited success of their own retaliation, Tehran has helped alleviate concerns about escalating conflict, leading to a decrease in safe-haven demand for gold.
