Gold Prices Surge Amid US-Iran Tensions, Fed Policy Speculation

Gold and silver prices continue to rise as US-Iran tensions escalate and investors speculate on Federal Reserve interest rate moves. The geopolitical climate and economic indicators such as inflation increasingly influence market dynamics, prompting investors to seek safe havens in precious metals.

Gold prices surged again Thursday, driven by US-Iran tensions and investor speculation on Federal Reserve policy adjustments. Spot gold increased by 0.7% to $5,012.83 per ounce, impacted by shifting geopolitical landscapes.

Market analyst Jamie Dutta highlighted concerns of prolonged military engagement if the US intervenes in Iran, after talks in Geneva showed progress but unresolved issues. Federal Reserve minutes revealed a united front on interest rates, with some members open to future hikes or cuts based on inflation.

Investors brace for economic indicators like the jobless claims data and Personal Consumption Expenditures report, influencing the Fed's decisions. Non-yielding assets like bullion are favored in low-rate environments, while silver hit significant highs, supported by low stock levels and tight supply.

(With inputs from agencies.)