Gold recovered to the $5,000 per ounce level during Thursday's trading, supported by increased demand for safe havens amid escalating geopolitical tensions, despite the continued strength of the US dollar limiting the yellow metal's gains.
The rise came as geopolitical risks persisted, with a new round of negotiations between Russia and Ukraine ending without conclusive results, along with escalating tensions with Iran amid reports of possible US military action, boosting demand for gold.
In contrast, the strength of the dollar limited the gains, after the release of the Federal Reserve meeting minutes which showed a division among members regarding the timing of interest rate cuts, with some indicating the possibility of a cut if inflation slowed, while others warned against rushing into monetary easing.
Strong US economic data, particularly in the industrial and manufacturing sectors, also supported the Federal Reserve's move to keep interest rates high for a longer period, boosting the dollar and putting pressure on gold.
Markets are awaiting key economic data releases, including unemployment claims and manufacturing indicators, as well as the Personal Consumption Expenditures (PCE) index on Friday, which is a key measure of inflation at the Federal Reserve.
📊 Technically
Gold is holding above the 100-hour moving average near $4956, which supports the short-term uptrend, but the fact that technical indicators remain neutral suggests that fluctuations may continue.
📌 Summary – Dar Al-Sabaik
Gold is benefiting from geopolitical tensions and has recovered to the $5,000 level, but the strength of the dollar and the division within the Federal Reserve may limit the continuation of the rise in the near term, with US inflation data awaited to determine the next direction.