XAU/USD recovers from a six-month low, climbing to $4,091 amid escalating geopolitical risks in the Middle East.
Gold prices reversed earlier losses, gaining 0.58% to trade at $4,091 as heightened US-Iran tensions dimmed prospects for a swift Middle East conflict resolution. The rally followed a six-month low, driven by fears of prolonged instability disrupting diplomatic efforts.
Prior to the rebound, XAU/USD had fallen sharply amid a stronger USD and rising Treasury yields. Analysts noted the metal’s sensitivity to geopolitical risks, with safe-haven demand resurfacing as negotiations appeared delayed.
Markets reacted cautiously, with gold trimming losses as investors weighed the potential for further escalation and its impact on global risk sentiment.