Gold prices have rallied towards near all-time highs as escalating Middle East tensions stoked safe-haven demand.
Spot gold (XAU/USD) traded at $2,386.62 an ounce by 06:55 GMT on Tuesday, after briefly dipping to $2,323 on Monday. The precious metal’s surge was driven by heightened fears of an imminent Israeli strike against Iran following Iran’s weekend attack.
Berto Tordecilla
Concerns over a potential wider regional conflict involving Middle Eastern powers and Western allies fueled gold’s appeal as a traditional haven asset. Central bank buying, particularly in emerging markets, also buoyed the yellow metal amid global economic downturn worries.
However, prospects of higher U.S. interest rates capped some upside, as traders hedged against the notion after robust inflation and retail sales data.
Markets now await Federal Reserve Chair Jerome Powell’s speech later on Tuesday for rate hike cues.
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