Gold Stays High as Fears of Bigger Middle East War Grow
Gold prices are staying close to their highest level since April 22 because people are worried the fight between Israel and Iran could turn into a bigger war. After Israel attacked Iran’s nuclear sites, many investors started moving their money into gold, which is seen as safe in times of trouble.
On Friday morning in Asia, gold was trading around $3,425 per ounce, which is about 1.1% higher for the day. This is the third day in a row that gold prices have gone up.
There are two main reasons for this rise. First, people are scared about what could happen in the Middle East, so they want to hold safe assets like gold instead of risky ones. Second, new economic data from the US showed inflation and producer prices were a bit softer than expected. This makes some traders think the US central bank might lower interest rates later this year. Lower interest rates make gold more attractive because it doesn’t pay interest.
Experts say gold could go even higher if tensions stay high, with the next target between $3,450 and $3,500. But if the US dollar gets stronger, it might slow down gold’s rise.
Impact: Gold may keep rising as investors stay worried. Risky markets could remain weak if the conflict grows.