Gold prices stable in global market

ISLAMABAD: Gold prices remained steady in the international market at around $4,010 per ounce, despite rising geopolitical tensions between the United States and Iran.

According to international financial reports, gold lost more than 2% last week. However, investors are now adopting a cautious approach as they closely monitor developments in the Middle East and the future monetary policy of the US Federal Reserve.

Market analysts say two key factors are shaping the outlook for gold prices: escalating geopolitical uncertainty and expectations of further US interest rate hikes.

Gold prices likely to further increase

Several Federal Reserve policymakers have indicated that additional rate increases may be needed in the coming months to keep inflation under control, with market expectations for a December rate hike strengthening.

Experts note that higher interest rates generally reduce the appeal of gold because the precious metal does not generate interest or dividend income, making other interest-bearing investments more attractive.

Analysts have also warned that if gold falls below key technical support levels, prices could decline further in the coming weeks. However, ongoing global uncertainty and tensions in the Middle East may continue to support demand for the safe-haven metal.