Gold rises with the decline of the dollar and political tensions

On Thursday, gold prices climbed, driven by a weakened dollar and heightened geopolitical tensions in the Middle East. These factors offset concerns about a potential decrease in US interest rates this year.

Spot gold rose by 0.8 percent to $2,379.33 per ounce by 1001 GMT, following its peak at $2,431.29 per ounce last Friday. Meanwhile, US gold futures increased by 0.2 percent to $2,393.70.

The dollar experienced its second consecutive day of decline, prompted by an unusual warning from the finance ministers of the United States, Japan, and South Korea regarding significant depreciation in other currencies. A weaker dollar makes gold more appealing to investors holding other currencies.

In terms of geopolitics, Israel hinted at a forthcoming response to the recent attacks by Iran over the weekend, although specifics were not disclosed. Additionally, European Union leaders opted to strengthen sanctions against Iran.

Federal Reserve officials have become more cautious in their discussions about the timing of interest rate cuts. Chairman Jerome Powell suggested on Tuesday that interest rates could remain elevated for an extended period. Elevated interest rates diminish the attractiveness of holding non-yielding assets like gold.

In other precious metals, silver saw a 0.8 percent increase in spot transactions to $28.42 per ounce. Platinum rose by 0.4 percent to $941.75, while palladium edged up by 0.3 percent to $1,028.80 per ounce.