Gold prices are rising due to renewed Middle East tensions and optimism about the upcoming Federal Reserve meeting.
Fears of a widening of the scale of the conflict led investors to turn to gold as a safe haven.
At the same time, the Federal Reserve is expected to keep interest rates steady, with market attention also on any hints about a possible rate cut in September.
Expectations of a series of interest rate cuts in the coming months could support gold prices and help drive a rebound.
Adding to the positive momentum for the precious metal, despite positive job market data and a slight recovery in consumer confidence, the US Dollar has retreated from a recent high, benefiting gold.
Lower yields have also made gold more appealing as they reduce the cost of holding non-yielding assets. Gold demand may increase further due to uncertainty around the US elections and a slowing global economy, which could drive more investors towards gold’s safe-haven qualities
