Gold held above $4,130 an ounce on Thursday as buyers stepped into recent weakness, even as escalating Middle East tensions pushed oil higher. Firmer energy prices reinforced expectations that the Federal Reserve could keep interest rates elevated, yet investors kept rebuilding positions in the metal.
Gold held firm above the $4,130 mark on Thursday as investors bought into recent weakness, shrugging off geopolitical risk that lifted oil and hardened bets the Federal Reserve could keep rates high. The metal edged up 0.1% to $4,132.07 an ounce at 21:32 ET, while Gold Futures slipped 0.4% to $4,134.55.
Silver was little changed, with XAG/USD holding at $59.71 an ounce, while platinum rose 0.5% to $1,652.58. The move followed a stretch in which gold rallied about 3% over the previous two sessions before consolidating.
Middle East tensions keep inflation risks in view
The U.S. and Iran showed little sign of returning to negotiations, and attacks on tankers in the Red Sea were reported for the first time since the conflict began in late February. Yemen’s Iran-backed Houthi movement claimed responsibility, raising fresh concerns over a shipping route key to Saudi Arabian crude exports.
That disruption helped keep oil near multiweek highs and prompted markets to reassess the inflation outlook before next week’s Fed meeting. Higher borrowing costs typically weigh on non-yielding bullion by raising its opportunity cost. Investors remain divided over whether the Fed will deliver another rate hike next week, with limited guidance from Chair Kevin Warsh adding to the uncertainty.
Dip-buying underpins bullion
ANZ analysts said investors have continued rebuilding gold positions despite the prospect of higher rates, suggesting the pullback has drawn buyers rather than sellers. The bank noted that non-commercial net long positions have climbed to their highest level since January, while renewed inflows into gold-backed exchange-traded funds indicate some investors are hedging against stretched equity valuations.
Gold has held above the $4,000 level this week after tumbling from its January record high. Traders are now watching whether the metal can build enough momentum to challenge resistance near $4,200.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
