Gold prices ended mostly flat at $99,537. This was as a strong US dollar offset increased demand for gold due to rising tensions in the Middle East. The standoff between Iran and Israel continued for a sixth day, with Israel confirming strikes near Tehran and Iran firing missiles in response. Concerns increased when the US president met with his security team, raising fears that the US could get involved, adding to uncertainty in global markets. However, gold did not rise much as investors remained cautious ahead of an upcoming decision by the US Federal Reserve. They were also uncertain due to trade tariffs and weak US economic data.
On the positive side, a survey by the World Gold Council showed that 95% of central banks expect global gold reserves to grow in the next year. In fact, 43% plan to buy more gold themselves. This supports long-term forecasts from major banks such as Goldman Sachs and Bank of America, which believe gold will hit $4,000 an ounce by mid-2026. However, while investment in gold is strong, actual buying in key Asian markets has been subdued due to high prices. In India, sellers offered deep discounts to boost sales after prices crossed 100,000, reaching a seven-week high of $63 an ounce.
