Home Business News Geopolitical tensions direct gold prices

Gold prices recorded a strong surge during the last two weeks as traders reacted to the increasing geopolitical tensions in the Middle East.

The latter have fueled more risk aversion and have pushed capital flows toward safe-haven assets. Although tensions remain elevated, gold prices could see price corrections if efforts to de-escalate the conflict succeed.

While the focus will remain on geopolitical tensions, gold could continue to see an impact from rising yields in the US as 10-year bond yields are approaching 5% at a time when the Federal Reserve is expected to maintain its interest rates at elevated levels for a long period of time.

In this regard, traders could monitor Jerome Powell’s comments later today.

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