Gold prices held on track for a weekly gain as ongoing military conflict in the Middle East sustained demand for safe-haven assets, even as volatile crude oil prices created uncertainty around the U.S. Federal Reserve’s monetary policy outlook. Spot gold traded higher around $4,059 per ounce, supported by persistent geopolitical friction following U.S. strikes on Iranian targets and Houthi-linked threats to Red Sea energy shipping lanes. The geopolitical strain briefly propelled Brent crude above $100 a barrel, renewing fears that elevated energy costs could reignite inflationary pressures and compel the Federal Reserve to keep interest rates higher for longer or consider further policy tightening. Because gold is a non-yielding asset that tends to face headwinds in high borrowing cost environments, surging oil prices and a resilient U.S. dollar temporarily capped bullion’s upward momentum. However, a late-week pullback in crude oil prices provided relief to precious metal markets, easing immediate rate-hike anxieties and allowing gold to secure a modest weekly climb. Market participants are now closely monitoring upcoming central bank policy decisions alongside developments across major Gulf transit routes to gauge gold’s near-term directional trajectory.
Gold Heads for Weekly Gain as Middle East Hostilities Fuel Safe-Haven Demand Amid Federal Reserve Rate Uncertainty
