Gold prices rise today. Will gains continue amid escalating geopolitical tensions?
Gold prices rose slightly during trading on Thursday to reach around $5,140 per ounce, continuing their gains for the second consecutive session, as investors increasingly sought safe-haven assets amid escalating geopolitical tensions in the Middle East.
This rise comes at a time when investors are monitoring political and military developments in the region, with global instability boosting demand for gold as one of the most important safe havens in financial markets.
Geopolitical tensions support gold's rise
The changing geopolitical landscape continues to play a key role in gold price movements, especially as the conflict in the Middle East continues and the crisis enters its sixth day.
US and Israeli forces have launched strikes on targets inside Iran, while Tehran has responded with missile attacks targeting several sites in the region, including vital energy facilities.
There have also been reports of an Iranian warship being sunk in international waters, further heightening tensions in the region.
Meanwhile, Iranian authorities have denied reports of negotiations between their intelligence ministry and Washington, insisting that these claims are untrue.
The impact of US tariffs on markets
On another front, the US Treasury Secretary announced the implementation of a 15% global tariff this week, with the possibility of further increases over the next five months.
These trade measures may increase uncertainty in the global economy, which supports demand for gold as a hedge against economic and political volatility.
Energy prices reignite inflation fears
At the same time, sharp rises in oil and gas prices have reignited fears of global inflation. This has prompted traders to revise their expectations for US monetary policy.
Current expectations suggest that the first interest rate cut by the Federal Reserve could come in September, while markets still expect two rate cuts in 2026.
Gold price outlook
With geopolitical tensions continuing and energy prices rising, gold may remain supported by safe-haven flows in the coming period.
Any further escalation in the conflict could push the precious metal to higher levels in global markets.
In such circumstances, gold remains one of the most important tools that investors turn to in order to protect their capital from market volatility and economic uncertainty.
However, the strength of the dollar may continue to put pressure on gold prices, as the unexpected rise of the US currency this week contributed to profit-taking in the gold market, despite the widening conflict in the Middle East, especially after renewed fears of inflation due to rising energy prices.
