Gold prices edged higher on Monday, finding support from increased safe-haven demand as investors sought refuge from geopolitical uncertainties and fluctuating market conditions.

Factors Influencing Gold Prices

• Geopolitical Tensions: Ongoing concerns about international relations are driving investors towards safer assets.
• Market Volatility: Uncertainty in equity markets is prompting a shift to gold as a store of value.
• Dollar Weakness: A slightly weaker US dollar also contributed to the rise in gold prices, making the metal more attractive to overseas buyers.

Analyst Commentary

Analysts note that while gold is benefiting from safe-haven flows, its gains are being capped by expectations of further interest rate hikes by the Federal Reserve. Higher interest rates typically reduce the appeal of non-yielding assets like gold.

Looking Ahead

Market participants will be closely monitoring upcoming economic data and geopolitical developments to gauge the future direction of gold prices. Any escalation in global tensions or a significant downturn in economic indicators could further boost demand for the precious metal.