Gold Soars, US$4,150 Targeted
Gold prices rose sharply to their highest level in more than two weeks on Wednesday. XAU/USD traded around US$4,140–US$4,141 per troy ounce, with the market beginning to target the US$4,150 area as the next key level.
Gold's rise was supported by hopes that diplomatic efforts between the United States and Iran remain open. US Secretary of State Marco Rubio stated that Washington remains ready for dialogue, while Iran has also asked Pakistani mediators to continue helping open the way for negotiations.
However, tensions in the Middle East have not completely subsided. The US military stated that it had completed its 11th night of attacks against Iran, while President Donald Trump warned that attacks could escalate if Iran tries to rebuild its nuclear program.
Iran also continues to carry out attacks in the Gulf region, including targeting US military assets in Bahrain, Kuwait, and Jordan. Furthermore, Iran said its forces attacked two oil tankers attempting to transit the Strait of Hormuz.
The risk increased after the Iran-backed Houthi group opened a new front by announcing a naval blockade against Saudi Arabia. This situation pushed oil prices to their highest level since June 12th and sparked concerns about energy-driven inflation.
As a result, gold still has the potential to strengthen as long as diplomatic expectations and geopolitical risks remain in balance. However, rising oil prices could strengthen expectations of a Fed rate hike, with the market pricing in an 88% chance that the Fed will raise rates at least once this year. If the US dollar also strengthens, gold's rally towards US$4,150 could be halted. (asd)*
Source: Newsmaker.id
