XAU/USD recovers as escalating US-Iran conflict drives safe-haven demand amid fresh military threats.
Gold prices rose above $4,125 in early Asian trading Thursday, extending a rebound as geopolitical risks intensified. The precious metal gained traction after US and Iranian officials exchanged fresh threats, with President Donald Trump vowing retaliatory strikes on Iranian infrastructure if attacks persist in the Strait of Hormuz.
Prices had dipped below $4,000 earlier in the week but found support as traders returned to safe-haven assets. Analysts noted the rebound was driven by short-term flows rather than a shift in fundamentals, with energy price concerns expected to limit further gains.
Fed rate hike expectations also shifted, with futures pricing a 34% chance of a 25 basis point increase this month, up from 10% a week ago.