Gold Surges Amid Escalating U.S.-Iran Tensions

Gold prices continued to climb on Thursday after a notable rise the previous day. This uptick is driven by ongoing tensions between the United States and Iran, prompting investors to seek safe-haven assets. Spot gold increased by 0.2% to $4,989.09 per ounce, while U.S. gold futures steadied at $5,008.60.

Geopolitical uncertainties loom large as reports suggest potential military action by the U.S. against Iran could extend over weeks. Despite some progress noted in Iran talks in Geneva, significant issues remain unresolved according to the White House.

Meanwhile, the Federal Reserve shows a largely unified stance to maintain current interest rates. However, members are divided on future actions, debating potential hikes if inflation persists or cuts if it recedes. Analysts predict an interest rate cut may occur by June, benefiting non-yielding assets like gold.