Gold Stays Strong Near Highest Level Since April as Israel-Iran Tension Grows
Gold prices are holding strong near their highest level in almost two months. This is because the fight between Israel and Iran has made investors worried, so many people are buying gold to keep their money safe.
On Monday, gold traded around $3,428 per ounce, which is close to the peak it reached back in April. The ongoing attacks and rising fear of a bigger war are making gold more attractive.
At the same time, traders are waiting for a meeting of the US Federal Reserve this week. Most people think the Fed will not raise interest rates now and may even cut rates later this year. Lower rates usually weaken the US dollar, and when the dollar is weaker, gold prices often go up.
Right now, gold prices are staying steady after a big jump. If the price goes above $3,500, it could rise even more. But if the situation in the Middle East improves or the US dollar gets stronger, gold prices could drop again.
Impact: Gold may stay high or go higher if the Israel-Iran tension continues and the US dollar stays weak, but prices could fall if peace returns or new US data makes the dollar stronger.