Gold prices (XAU/USD) stabilized in the $2,330s on Tuesday as ongoing geopolitical risks continued to bolster demand for the safe-haven asset.
The recent surge in protests against Israel’s occupation of Gaza, Russia’s actions in Ukraine, and concerns surrounding global trade fragmentation have collectively heightened geopolitical tensions, elevating the perceived risk level in the markets.
However, gains in gold may face limitations following data from the US suggesting that interest rates are likely to remain elevated for an extended period. This outlook diminishes the attractiveness of non-yielding precious metals like gold.
In summary, gold prices have found a supportive floor amid escalating geopolitical risks, but their upside potential could be restrained by the persistent expectation of higher interest rates in the US.
