Gold rebounds as geopolitics outweigh rate concerns

Gold prices climbed slightly on Thursday, reversing some recent losses. This rise reflects renewed interest in gold as a safe haven asset due to rising geopolitical tensions, Reuters reported.

Spot gold prices inched up, recovering from a dip the previous day. This comes after a string of record highs for gold that ended on Tuesday. U.S. gold futures also saw a small increase.

While data confirmed hotter-than-expected inflation in the U.S. for the third month in a row, potentially prompting the Fed to maintain high interest rates longer, geopolitical tensions seem to be the dominant factor for gold prices right now.

Analysts suggest that even though higher interest rates might have pressured gold prices in the short term, the ongoing geopolitical uncertainty is limiting any significant downside. Investors still view gold as a valuable hedge against these risks.