Gold prices climbed to a one-month high on Wednesday, rising more than 2% as shifting geopolitical dynamics and macroeconomic data converged to support the precious metal.
The rally was fueled by growing optimism surrounding a potential US-Iran peace deal, which has helped temper concerns about supply-driven inflation spikes in energy markets.
This geopolitical de-escalation narrative is reinforcing a broader dovish trade.
Investors are increasingly focused on the Federal Reserve’s policy path, with recent economic indicators pointing toward a cooling US economy.
The latest move in gold follows a series of gains earlier in the week, including a jump on Tuesday after softer-than-expected US inflation figures intensified expectations for a rate cut.
The precious metal’s momentum has been further bolstered by disappointing US nonfarm payrolls data released on Thursday, which signaled weakness in the labor market.