FX.co ★ Gold Rises on Geopolitical Risks

Gold prices climbed towards $3,380 per ounce on Thursday, recovering from the previous session's declines. This rise is attributed to gold's status as a safe-haven investment amidst ongoing geopolitical tensions. The conflict between Israel and Iran has now stretched into its seventh day, with reports indicating that Israeli military forces have targeted over 20 sites in and around Tehran, including facilities associated with nuclear weapons development and missile production. Additionally, the United States is contemplating support for Israel's attacks on Iranian nuclear installations, a decision that risks expanding the conflict into a wider regional war. In a parallel economic development, the Federal Reserve decided to maintain its benchmark interest rate on Wednesday, signaling the possibility of two rate cuts later in the year, despite continuing inflation and slow economic growth. This decision follows President Trump's persistent criticism of Fed Chair Jerome Powell, urging more substantial rate cuts.