Geopolitical Relief vs. Monetary Ease

Despite the diplomatic tension, markets are pricing in a more dovish Federal Reserve as lower oil prices temporarily reduce inflation fears. This environment makes non-yielding assets like gold more attractive to institutional investors.

The Dollar Tailwind

A weaker U.S. dollar has reinforced gold's climb, making it cheaper for international buyers. Technical support is now firmly established at $4,800, with analysts eyeing a run toward $5,000 by mid-year.