London: Gold prices moved higher on Thursday as investors turned to the precious metal for safety amid rising geopolitical tensions and economic uncertainty. Demand for gold increased as markets reacted to ongoing conflict concerns in the Middle East and movements in the US dollar.
Spot gold rose by about 0.4 percent to around 2,156 dollars per ounce during trading. US gold futures also increased by about 0.7 percent to nearly 2,168 dollars per ounce. Analysts say investors are buying gold because it is considered a safe place to store value during times of global uncertainty.
Tensions in the Middle East have raised concerns in financial markets, pushing investors toward safer assets such as gold. When conflicts escalate or economic risks grow, gold often attracts more buyers as it is seen as a reliable investment during unstable periods.
Another factor supporting gold prices is the movement of the US dollar. A slightly weaker dollar makes gold more affordable for buyers using other currencies, which increases demand in international markets.
However, gains in gold prices remain limited because investors are also watching US economic data and the Federal Reserve’s interest rate policy. Higher interest rates can reduce the appeal of gold since the metal does not offer interest returns like other investments.
Market participants are also waiting for upcoming US labour market data, which could influence future decisions on interest rates. These expectations are keeping investors cautious even as demand for gold increases.
Other precious metals also showed mixed movement in the market. Silver and platinum prices rose slightly, while palladium saw a small decline.
Analysts say gold prices could remain supported in the coming weeks if geopolitical tensions continue or if global economic uncertainty increases. However, movements in the US dollar and interest rate decisions will remain key factors shaping the direction of the gold market.