Slight Increase in Gold Prices as Dollar Declines and Geopolitical Concerns Rise

Gold prices witnessed a slight increase during Thursday's trading, June 26, supported by the decline in the value of the US dollar and escalating uncertainty about developments in the Middle East, in addition to concerns regarding the independence of the US Federal Reserve.

A report published by the Wall Street Journal on Wednesday indicated that US President Donald Trump is considering choosing an alternative to current Federal Reserve Chairman Jerome Powell by September or October, raising investors' concerns about the central bank's independence in the future. Trump described Powell as "loathsome," confirming that he is considering three or four potential candidates to succeed him.

Gold is considered a safe haven in times of economic and political instability, and these developments have increased demand for it. The decline of the US dollar to its lowest level since March 2022 has made the precious metal, priced in dollars, more attractive to buyers from outside the United States.

On the other hand, President Trump, during his participation in the NATO summit, mentioned that the ceasefire between Israel and Iran "held" on Wednesday, expressing satisfaction with ending the 12-day conflict. He added that he will seek Iran's commitment to halting its nuclear ambitions during the upcoming talks next week.

Financial markets are awaiting the release of US Gross Domestic Product (GDP) data later today, in addition to Personal Consumption Expenditure data scheduled for release on Friday, which may impact the movements of gold and the dollar.

In trading, gold futures rose by 0.1% to reach $3347 per ounce, while the spot price of the yellow metal recorded a slight increase of less than 0.1%, settling at $3334.46 per ounce.