Gold prices rose above $5,160 per ounce on Wednesday, recovering losses from the previous session as investors monitored escalating conflict in the Middle East and its potential impact on global markets.
The US-Israeli conflict with Iran entered its fifth day, with Israeli forces striking a building hosting clerics who were meeting to select a new Supreme Leader on Tuesday. The attacks have heightened concerns about regional instability and the potential for a prolonged crisis.
US President Donald Trump voiced apprehension that the emerging Iranian leadership could be as challenging as the previous regime. He also pledged naval escorts and insurance support for oil tankers navigating the Strait of Hormuz, aiming to reassure markets and mitigate disruptions to global energy supplies.
Gold and other precious metals had tumbled on Tuesday amid a stronger US dollar, as investors weighed the impact of surging energy costs on inflation and reassessed the Federal Reserve’s potential policy response.
Analysts say the rebound in gold reflects heightened risk sentiment, with investors seeking safe-haven assets amid geopolitical uncertainty. Market participants are closely watching developments in the Persian Gulf, alongside movements in oil prices, which have surged due to supply disruptions in the region.
