Gold prices rebounded to around $4,120 during weekend trading as investors returned to seeking safe havens amid escalating tensions in the Middle East.
At 9:30 a.m., gold prices were trading at $4,121, stable since opening early Friday in Asian trading.
While the White House signaled that the United States remains committed to the memorandum of understanding with Iran, uncertainty continued to rise after US President Donald Trump declared the framework agreement to end the conflict had ended.
The situation became more tense when Iran launched attacks on US military bases in Bahrain, Kuwait and Qatar, as well as attacks on ships in the Strait of Hormuz. Jordan also reportedly intercepted several missiles launched by Iran.
The prolonged conflict is expected to push crude oil prices higher. Rising energy prices have the potential to increase global inflation, reinforcing expectations that the Federal Reserve (Fed) will maintain high interest rates for an extended period.
Meanwhile, the Fed's June meeting minutes showed policymakers were still divided on the direction of interest rates.
Some officials believe interest rates could be cut slightly by the end of the year, while others see current rates as not high enough to ensure inflation returns to target.
For now, market focus remains on developments in the US-Iran conflict. Any escalation in tensions is expected to continue to influence investor sentiment and gold price movements in the near term.
