PRECIOUS METALS | Strategist: Geopolitical Tensions And High Rates May Weigh On Gold

Gold may face dual pressure in the near term from geopolitical tensions and high interest rates, Pepperstone research strategist Ahmed Al-Assiri said. According to Jin10, Al-Assiri said renewed escalation in U.S.-Iran geopolitical tensions has hurt overall market confidence and weakened gold’s recent rebound momentum. He said investors have remained reluctant to build strong long positions in gold because U.S. Treasury yields have stayed elevated and uncertainty over the Federal Reserve’s policy path has persisted. Al-Assiri added that the renewed tensions have pushed energy prices higher, which could delay the global disinflation process. However, he said gold’s medium-term outlook remained constructive compared with the heavy selling pressure seen in recent weeks.