Could gold reap more gains on escalating Middle East woes?

Despite higher bond yields, the Gold price gained to around $1,980 this week – its highest level in three months. Economists at Commerzbank analyze the yellow metal’s outlook.

The Gold Index (XAU/USD) upside potential is likely exhausted, but gold price could probably chalk up some additional gains if the Middle East conflict were to escalate or widen. Otherwise, its upside potential is likely exhausted, however.

Analysts only envisage further sustainable gains for gold prices once there are signs that a turnaround in US interest rate policy is on the cards – in response to the weakening of the US economy that economists do anticipate.