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Gold rises above $4,050 on renewed US-Iran safe-haven demand
Gold traded near $4,080 in early Asia after pulling back to the $4,000 level the prior session, as traders rotated toward safe havens amid renewed US-Iran military tensions.
Gold rebounded above $4,050 in Wednesday early Asia, lifting XAU/USD to around $4,080 as global safe-haven demand intensified after the prior session’s dip toward the $4,000 psychological level, according to FXStreet.
The renewed military tension between the United States and Iran has increased volatility in commodities, with traders shifting capital back into gold, FXStreet said. ING commodities strategist Ewa Manthey described the move as more like dip-buying than a reaction to new headlines.
FXStreet noted traders continue to weigh escalations in the US-Iran conflict, including the US Central Command carrying out its 11th consecutive night of strikes on Iran and Tehran and its Houthi allies responding in ways that affect the Middle East and Red Sea region.
The article said markets are watching for signs that higher energy costs could stoke inflation, potentially increasing pressure on the Federal Reserve to tighten policy. FXStreet added that swap traders see low odds of a rate hike at the July meeting after softer US inflation data, while traders have fully priced in at least one hike by the end of the year.
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