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Analyst: Safe-haven sentiment offsets pressure from rising interest rates, with gold prices trending higher amid volatility
Svmuu News: As the conflict in the Middle East continues to drive up demand for safe-haven assets, gold prices have risen and are approaching the $5,200-per-ounce mark. New York gold futures rose 0.8% to $5,175.20 per ounce. An analyst at ING said, “The inflationary impact of the Middle East conflict, driven by sharply rising energy prices, may reinforce market expectations that interest rates will remain high for a longer period, which is a negative factor for non-interest-bearing assets such as gold. However, high geopolitical uncertainty continues to support risk premiums, which, despite the challenging interest rate environment, helps solidify price support.” (Jin Shi)
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