Gold prices edged lower in early Friday trading and are currently hovering just above the $4,600 level. After touching a new all-time high earlier in the week, the precious metal surrendered part of its gains as perceived geopolitical risks receded. The apparent stabilisation of unrest in Iran eased fears of an imminent US military strike, boosting risk appetite across financial markets. This supported equities and reduced demand for traditional safe-haven assets such as gold. Nevertheless, the situation in the Middle East, just one of several sources of global geopolitical instability, could flare up at short notice, limiting the scope for a significant correction in gold prices. At the same time, a modest uptick in the US dollar during the previous session, following better-than-expected US unemployment claims data, created an additional headwind for the metal. Despite this, gold’s broader outlook remains positive, with further gains possible.
Ricardo Evangelista, ActivTrades

Source: ActivTrader
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