Gold Re-Breaks Above US$4,000
Gold prices rebounded on Tuesday (July 21st), managing to remain above the psychological level of US$4,000 per troy ounce. XAU/USD rose 0.4% to around US$4,024.72 per troy ounce, while gold futures rose 0.5% to US$4,029.87.
Gold's gains came as investors continued to monitor developments in the Middle East conflict. Tensions escalated after the United States renewed attacks on Iranian targets, while President Donald Trump warned that Tehran would "pay" for the deaths of three US soldiers.
Geopolitical risks also widened after the Iran-backed Houthi group in Yemen threatened to blockade Saudi Arabia's maritime routes. This threat renewed market concerns about the security of energy routes in the Red Sea and potential disruptions to oil supplies.
However, gold's gains were restrained by hopes for diplomacy. Iran said mediators were discussing proposals to defuse the conflict, while other reports suggested a 10-day suspension of the attacks. This signal has calmed the market somewhat and curbed demand for safe havens.
Consequently, gold remains in a tug-of-war. The Middle East conflict provides support, but rising oil prices could trigger inflation and force the Fed to maintain high interest rates for longer. As long as gold cannot rise strongly beyond the US$4,000 area, its movement is likely to remain limited. (asd)*
Source: Newsmaker.id
