Gold Prices Rebound Amid Middle East Tensions

On Wednesday, gold prices advanced, recovering losses from the previous session as buyers entered the market for the fifth consecutive day amidst ongoing tensions in the Middle East. Spot gold rose by 1.5% to $1,375.64 per ounce at 7:25 AM Nigerian time.

Silver climbed 2% to $83.97, while platinum and palladium also saw nearly 2% gains. The rise in gold prices comes as traders balance the risk premium associated with gold against a stronger US dollar, which surged to a 1.5-week high.

Despite the rally, the number of bullish bets on gold has sharply decreased, with money managers' net long positions dropping to their lowest level in nearly a decade. The recent surge in energy prices has heightened inflationary risks, prompting traders to scale back expectations for monetary easing.

The geopolitical tensions, particularly the US-Israel conflict with Iran, have further complicated market dynamics, with reports of Israeli strikes on Iranian sites contributing to the volatility.