Gold Glimmers as Middle East Tensions Boost Safe-Haven Demand

Gold prices rebounded by 2% due to mounting Middle East tensions and a pause in the dollar's rise. Spot gold and U.S. gold futures saw significant gains as investors preferred gold's safe-haven appeal. The ongoing conflict could sustain high gold demand if military actions escalate.

Gold prices surged 2% on Wednesday, recovering from last week's dip as increased Middle East tensions fueled demand for safe-haven assets.

Spot gold rose 2.2% to $5,198.58 per ounce by 1017 GMT, with U.S. gold futures also climbing. The temporary softening of the U.S. dollar made gold more attractive for international investors.

The ongoing conflict in the Middle East and its potential to disrupt oil supply has investors cautious, with precious metals like gold and silver gaining favor. Economic analysts expect heightened geopolitical risks to support gold's appeal.

(With inputs from agencies.)