Gold Breaks $5,260, Middle East Alarms Reign
Gold prices rose sharply on Friday (February 27th), briefly breaking through the $5,260 per ounce area, as the market returned to defensive mode. The combination of hotter-than-expected US producer inflation and rising geopolitical concerns regarding Iran spurred safe-haven flows, sending XAU/USD to its highest level in about a month.
On the geopolitical front, another round of US-Iran nuclear talks in Geneva ended without a final agreement. Mediator Oman stated progress and technical discussions will continue next week in Vienna, but the situation remains fragile as Washington continues to assess pressure options—including the use of force—remain on the table.
Risk sentiment was further fueled by reports that the US Embassy in Jerusalem granted "authorized departure" permits for non-essential staff and their families to leave Israel, as a precautionary measure amid potential regional escalation. This headline triggered a swift reaction in the precious metal.
In the market, the gold rally was also supported by falling US bond yields and concerns that price pressures could persist for longer. With diplomacy yet to produce a breakthrough and regional risks rising again, gold remains positioned by the market as a portfolio hedge against heightened uncertainty.
Source: Newsmaker.id
