Gold prices hike amid rising Middle East tensions, dollar weakness

Updated 6/12/2025 11:03:00 AM
Gold prices hike amid rising Middle East tensions, dollar weakness

Arab Finance: Gold prices surged on Thursday globally, as rising tensions in the Middle East boosted demand for safe-haven assets, Reuters reported.

Meanwhile, softer-than-expected US inflation data raised expectations of interest rate cuts by the Federal Reserve (Fed).

Spot gold edged up by 0.6% to record $3,373.09 an ounce, while the US gold futures gained 1.5% to $3,393.80.

The US dollar index dropped to a near two-month low, boosting the value of greenback-priced bullion.

Kelvin Wong, a senior market analyst, Asia Pacific at OANDA, stated that a "bullish breakout" of the $3,346 resistance triggered technical buying.

"We could potentially see the Fed moving more quickly than anticipated, given the CPI data, which is not particularly alarming at this juncture," Wong said.

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