Gold prices rose more than 2% to near $4,600 an ounce on Wednesday, extending gains for a second consecutive session, amid growing hopes for a de-escalation of the ongoing conflict in the Middle East.
Gold had previously fallen by about 25% from its peak in March, affected by rising energy prices as a result of the war with Iran, which fueled inflation fears and increased expectations that major central banks would raise interest rates during the year.
In this context, a Federal Reserve official indicated that interest rates may need to remain high for a longer period to control inflation.
📌 Summary
Gold rose above $4,600, supported by hopes of easing tensions, but inflation concerns and the continuation of tight monetary policy are still limiting its gains.