Gold prices rose slightly on Friday, buoyed by ongoing geopolitical tensions that are prompting investors to seek safe-haven assets. Concerns over the situations in Eastern Europe and the Middle East are contributing to market uncertainty, increasing the appeal of gold as a store of value.

Factors Influencing Gold Prices

• Geopolitical Risk: Heightened tensions in Ukraine and the Middle East are driving investors towards safer assets.
• Inflation Concerns: Although inflation remains a concern, its impact on gold prices is currently overshadowed by geopolitical factors.
• Dollar Strength: A stronger US dollar can sometimes weigh on gold prices, as it makes the metal more expensive for buyers holding other currencies.

Analyst Commentary

Analysts suggest that gold’s upward momentum is primarily driven by risk aversion. While economic data and inflation expectations play a role, the current geopolitical climate is the dominant factor influencing price movements.

Investors are advised to monitor developments in the geopolitical landscape closely, as these events are likely to continue shaping gold’s performance in the near term.