Gold prices rose as a weaker US dollar and declining oil prices supported demand for the safe-haven metal amid growing optimism over a potential easing of tensions in the Middle East.
Spot gold gained 0.8% to US$4,468.84 an ounce, while US gold futures for August delivery rose 0.7% to US$4,495.70.
The precious metal found support after the dollar weakened, making gold more affordable for holders of other currencies. Oil prices also eased following reports that Israel and Lebanon had agreed to implement a ceasefire, raising hopes that broader negotiations could eventually help de-escalate the conflict involving Iran.
Market sentiment was further supported after the US House of Representatives approved a resolution aimed at preventing President Donald Trump from continuing military action against Iran, reflecting growing concern among lawmakers over the prolonged conflict.
Analysts said gold’s direction remains closely tied to movements in the US dollar and oil prices. Tim Waterer, chief market analyst at KCM Trade, said gold continues to benefit when both markets retreat, while positive developments surrounding US-Iran relations could provide additional support.
Meanwhile, New York Federal Reserve President John Williams reiterated that there was currently no need to adjust US monetary policy, adding that inflationary pressures stemming from the Middle East conflict were unlikely to persist over the long term.
Despite expectations of near-term volatility, some analysts remain constructive on gold’s longer-term outlook. Matt Simpson, senior analyst at StoneX, said the current pullback could represent a healthy consolidation phase within a broader bull market, with prices maintaining an upward bias towards year-end.
Other precious metals also traded higher, with silver rising 0.6% to US$73.13 an ounce, platinum gaining 0.9% to US$1,875.70 and palladium adding 0.3% to US$1,306.
