Gold halted its decline in the fifth week of the protracted Middle East war
Kyiv • UNN
The value of bullion holds at $4,500 per ounce after its first weekly gain. Since the beginning of the conflict, the asset has lost about 15% of its value.
Gold prices stabilized after the first weekly increase since the beginning of the war in the Middle East, which is already in its fifth week with no end in sight. At the start of trading, bullion held near the $4,500 per ounce mark. This was reported by Bloomberg, writes UNN.
Details
The previous session ended with a 2.7% increase as buyers returned to the market after a previous decline.
Despite a short-term recovery, gold has lost about 15% of its value since the beginning of the conflict. The market is moving unstably against the backdrop of a sharp increase in energy prices and general geopolitical tensions.
Analysts explain this by the fact that central banks may be forced to sell gold to cover liabilities or raise rates to combat inflation, which reduces the attractiveness of this asset.
Geopolitics only exacerbates the situation
At the same time, the situation in the region is becoming more complicated: the United States is increasing its military presence, Yemeni Houthis have joined the conflict, and countries in the region are trying to launch diplomatic negotiations.
Against this background, markets remain tense, and investors are effectively balancing between the fear of escalation and the search for stable assets.
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