Gold firms as softer dollar, Middle East tensions lend support

Gold prices rose as the dollar weakened and tensions in the Middle East escalated. Investors are awaiting U.S. economic data to gain insight into the Federal Reserve’s interest rate outlook. Spot gold increased to its highest level since February 9, while U.S. gold futures also edged higher. The weakening dollar made gold more attractive to overseas buyers. The short-term outlook for gold is mixed, as delays in rate-cutting plans are balanced by safe-haven demand from geopolitical uncertainty. Economic weakness could potentially spark hope for rate cuts, which would support gold.