Global gold prices extended their rally on Wednesday, climbing to a seven-week high as investors turned to the precious metal amid a weaker U.S. dollar, falling Treasury yields, and improving prospects for a diplomatic breakthrough in the Middle East. Spot gold rose for the fourth consecutive session, reaching around $4,265 per ounce, while U.S. gold futures also posted solid gains.
Market analysts said the rally was driven by growing expectations that negotiations involving Iran and Oman could help ease tensions around the Strait of Hormuz, reducing concerns over energy supply disruptions. At the same time, weaker U.S. economic indicators have lowered expectations of further interest rate hikes, making non-yielding assets such as gold more attractive to investors.
Other precious metals also recorded gains, with platinum and palladium advancing, while silver traded slightly lower after recent strong gains. Investors are now closely watching the upcoming U.S. employment data, which could influence the Federal Reserve’s next monetary policy decision and determine the near-term direction of gold prices.
News as Reported.
