May 21 2025, 11:43
Gold rose to around $3,300 on Wednesday, nearing a two-week high and building on a more than 2% gain from the last session, supported by geopolitical risks and persistent weakness in the US dollar.
Reports that Israel is planning a strike on Iranian nuclear sites have raised concerns that the Middle East conflict could escalate, as such an attack might provoke retaliation from Iran.
Adding to geopolitical concerns, President Trump said Russia and Ukraine would begin ceasefire talks immediately, but he appeared to signal that he would step back from mediating the three-year conflict.
Meanwhile, the US dollar remained subdued following the Federal Reserve’s cautious economic outlook and Moody’s downgrade of the US credit rating due to rising debt levels.
Investor confidence was further shaken by ongoing uncertainty over tariff policies and an upcoming crucial vote on Trump’s major tax reforms.
A softer greenback has made gold more affordable for international buyers, boosting demand.
Source: Trading Economi
