Gold prices held onto their gains during Wednesday's trading, trading above $4,700 an ounce, near their highest levels in about two weeks, supported by a decline in the US dollar amid signs of possible easing of tensions in the Middle East.
The support for the yellow metal came after statements by US President Donald Trump indicating the possibility of ending military operations within a period of two to three weeks, which affected the strength of the dollar and provided additional support for gold.
In contrast, markets continue to face mixed signals, as US military moves in the region, including the strengthening of the military presence, have fueled concerns about the widening scope of the conflict, which has been reflected in higher oil prices and increased inflationary pressures.
These developments have reinforced expectations that the Federal Reserve will continue its tight monetary policy, limiting the dollar's decline and simultaneously curbing gold's gains, given that it is a non-yielding asset.
Markets are awaiting a highly anticipated speech by the US president, along with the release of important economic data in the United States, including the ADP private sector jobs report, retail sales, and the manufacturing purchasing managers' index, which should provide further indications of economic trends and monetary policy.
Attention is also turning to the US jobs report (NFP) due at the end of the week, which is one of the most important indicators affecting market movements.
Geopolitical developments remain the most prominent factor influencing gold prices during the current phase, amid continued volatility and uncertainty in global markets.