Gold Remains at Elevated Levels Amid Ongoing Geopolitical Uncertainty

Gold (XAU/USD) Analysis

  • Geopolitical uncertainty keeps markets on edge
  • Gold prices remain elevated as the bullish outlook remains intact
  • Get your hands on the Gold Q2 outlook today for exclusive insights into key market catalysts that should be on every trader's radar:

Geopolitical Uncertainty Keeps Markets on Edge

The recent back and forth between Israel and Iran is the latest development in the ongoing conflict in the Middle East. Many representatives to the United Nations have urged for cool heads to prevail after Iran retaliated to a targeted Israeli strike that killed two of its senior members of Iran’s Islamic Revolutionary Guard Corps.

Israel has announced its intention to respond to the barrage of drones launched at the nation, keeping gold elevated and weighing on major indices, although indices are also being impacted by the prospect of rates remaining higher for longer.

Gold volatility, similar to gold prices , peaked but have recently eased lower after Iran considered the matter settled. The threat of a broad, direct conflict between two large powers in the Middle East represents a risk to the market and market sentiment. Investors may seek temporary shelter via traditional safe haven plays like the US dollar or gold – both of which remain elevated. Further stock market losses also help raise the attractiveness of the precious metal.

30-Day Implied Gold Volatility (GVZ)

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