The post Gold price holds ground due to safe-haven demand amid rising tensions in Middle East appeared on BitcoinEthereumNews.com.

Gold price receives support from safe-haven flows as Joe Biden discussed contingency plans to strike Iran’s nuclear facilities. The dollar-denominated Gold could struggle as the US Dollar Index trades around its multi-year high of 109.56, reached on Thursday. The non-yielding Gold could receive support as yields on US Treasury bonds remained subdued. Gold prices (XAU/USD) edges higher for the fourth consecutive session on Friday, building on a stellar performance in 2024 with gains exceeding 27%, the metal’s best annual return since 2010. This sustained rally is attributed to strong safe-haven demand amid persistent geopolitical tensions in the Middle East and the prolonged Russia-Ukraine conflict. According to three sources cited by Axios, US President Joe Biden reportedly discussed contingency plans to strike Iran’s nuclear facilities if Tehran made significant progress toward developing a nuclear bomb before Donald Trump’s inauguration on January 20. These discussions highlight heightened concerns over Iran’s nuclear ambitions during the transitional period between administrations. Traders remain vigilant about a possible recovery in China’s economy and its impact on Gold demand. In a New Year’s address on Tuesday, President Xi Jinping pledged to prioritize economic growth, promising more proactive policies to bolster China’s economy in 2025, according to Reuters. Daily Digest Market Movers: Gold price gains support due to safe-haven flows The US Dollar Index (DXY), which measures the US Dollar’s (USD) performance against six major currencies, climbed to a fresh multi-year high of 109.56 on Thursday before easing slightly to trade around 109.20 at the moment of writing. The strength of the Greenback may have limited the upside potential of dollar-denominated Gold, as a stronger USD makes Gold more expensive for buyers using other currencies. Gold, a non-yielding asset, may have found support as yields on 2-year and 10-year US Treasury bonds remained subdued at 4.24% and 4.56%,…

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Filed under: News - @ January 3, 2025 2:22 am