Gold prices rally to $3,How high can Cardano go in 2025?375 as geopolitical risks intensify
US military involvement in Middle East conflicts triggers flight to safety
Fed officials hint at potential July rate cuts, weakening the dollar
The precious metals market witnessed significant upward momentum early Monday, with spot gold (XAU/USD) climbing toward $3,375 during Asian trading hours. This movement reflects growing investor anxiety following Washington's unexpected military engagement in Middle Eastern conflicts. Market participants are closely monitoring how these developments might influence global risk sentiment throughout the trading week.
Recent military actions have dramatically altered the geopolitical landscape. The United States conducted precision strikes against multiple strategic locations in Iran over the weekend, marking a significant escalation in regional tensions. Such developments typically create favorable conditions for gold, which historically performs well during periods of international instability and uncertainty.
Monetary policy expectations are adding another layer of support for bullion. Recent commentary from Federal Reserve officials suggests growing openness to adjusting interest rates in the coming months. This potential policy shift could maintain pressure on the US dollar while enhancing gold's appeal as an alternative store of value.
Market attention now turns to upcoming economic indicators, particularly the preliminary US PMI data scheduled for release later in the session. Strong economic readings could temporarily limit gold's upside by supporting the dollar, while disappointing figures might accelerate the metal's ascent as investors seek protection against potential economic headwinds.
