Gold prices (XAU/USD) remain subdued at $2,314 per ounce amid persistently high U.S. interest rates and geopolitical tensions in the Middle East. Despite being viewed as a safe haven, gold has not benefited significantly from the evolving situations, including the potential de-escalation between Israel and Hamas.
Geopolitical Tensions and Fed Policies Weigh on Gold Prices
Despite a lack of major economic announcements mid-week, gold trades with a positive but constrained outlook. The strength of the U.S. dollar, marked by a 0.5% rise in the U.S. Dollar Index to 103.2, and recent hawkish commentary from Federal Reserve officials underscore expectations that U.S. interest rates may remain elevated for an extended period.