Gold Prices Rise Amid Middle East Tensions, Weaker Dollar

Gold prices rose Thursday, trading above $5,170 per ounce. The precious metal hit an intraday high near $5,195.

Rising tensions in the Middle East drove investors to gold, a safe-haven asset. Reports surfaced that a U.S. ship sank an Iranian warship, followed by Iranian missile launches and attacks on energy sites. Iran also denied reports of secret talks with Washington, calling them fabrications.

The U.S. dollar weakened ahead of Thursday’s weekly Jobless Claims report. A weaker dollar makes gold cheaper for international buyers, which boosts demand. Federal Reserve official Michelle Bowman is also scheduled to speak.

Economic data showed the ISM Services PMI index at 56.1 in February, up from 53.8 and above expectations of 53.5. This suggests a healthy U.S. economy, potentially leading the Federal Reserve to keep interest rates higher longer. Despite strong data, the dollar struggled to gain footing.

Gold currently trades at $5,165, just below the $5,193 resistance zone. Meanwhile, silver remained in a tight range at $84.44. It traded below the $85.44 resistance level, which also marked its 200-day exponential moving average.