Growing Middle East insecurity prompts investors to turn to gold – London Business News | Londonlovesbusiness.com

Gold prices rose on Tuesday after two sessions of losses as heightened geopolitical risks in the Middle East renewed demand for safe-haven assets.

The escalating conflict in the Middle East has prompted investors to seek security in gold, bolstering its appeal amidst broader market uncertainty. However, gold prices could be weighed by the rebound of the US dollar.

Although it remains near its 2-year lows, the currency saw its second consecutive day of gains and could impede gold’s progress to a certain extent.

At the same time, the overall outlook for gold remains supported by global economic uncertainties and dovish monetary policies from several major central banks. Market participants are closely watching upcoming economic data, including the JOLTS job openings and ISM manufacturing reports, which could provide further indications on the US economy’s direction and could affect the market’s direction.

With the Federal Reserve focused on labour market conditions, any significant developments in employment figures could drive additional volatility in gold prices throughout the week.