Gold Rebounds from Six-Month Low on Trump Threat, Middle East Tensions
Gold (XAU/USD) trimmed earlier losses and turned positive on Thursday, rising 0.58% as US-Iran exchanges of fire dimmed hopes for a swift resolution to the Middle East conflict. The metal traded near $4,091 after hitting a six-month low.
Gold (XAU/USD) rebounded on Thursday, erasing earlier losses to trade 0.58% higher near $4,091. The recovery followed a fresh six-month low as renewed US-Iran hostilities complicated Middle East peace negotiations, keeping safe-haven demand elevated.
Market sentiment was rattled by escalating rhetoric from former President Trump, which traders interpreted as a signal that geopolitical risks remain elevated. The lack of progress in de-escalation has pushed some investors back into gold despite the broader dollar strength.
The move reversed a sharp decline that had taken the yellow metal to its weakest level since mid-2024. Analysts note that gold’s ability to hold above $4,000 will be tested in the coming sessions as ceasefire talks remain uncertain.
Source: FXStreet Forex News