Analysts: Safe-Haven Sentiment Offsets High Interest Rate Pressure, Gold Prices Fluctuate Higher

Odaily News Due to the ongoing Middle East conflict driving up demand for safe-haven assets, gold prices rose, approaching the $5,200 per ounce mark. New York gold futures increased by 0.8% to $5,175.20 per ounce. Analysts from ING stated: "The inflationary impact of the Middle East conflict, through significantly pushing up energy prices, may reinforce market expectations for interest rates to remain high for a longer period, which is a negative factor for non-yielding assets like gold. However, elevated geopolitical uncertainty continues to support risk premiums, helping to solidify a price floor despite the challenging interest rate environment." (Jin10)