Gold Rises as Middle East Peace Hopes Rise
Gold prices rebounded above $4,500 per ounce on Thursday, boosted by a weaker dollar and falling oil prices, following growing optimism over a potential resolution to the Middle East conflict. The ceasefire agreement between Israel and Lebanon is seen as a first step toward easing broader tensions, including the conflict involving the US, Israel, and Iran.
Furthermore, the Republican-controlled US House of Representatives passed a resolution to prevent President Donald Trump from pursuing military action against Iran, boosting market sentiment. However, uncertainty remains high regarding the outcome of the war, while geopolitical risks remain a key factor influencing gold prices.
Since the outbreak of the conflict in late February, gold prices have fallen by about 16%, driven by a surge in oil prices that has raised inflation concerns and heightened expectations of interest rate hikes.
However, consultancy firm Metals Focus expects gold to continue its upward trend in the second half of 2026, although demand is projected to decline by about 2% due to a decline in jewelry purchases and central bank spending.
The market is now closely monitoring global political and economic developments, including energy prices and Federal Reserve decisions, which will be important indicators of gold's future direction. (gn)
Source: Newsmaker.id
