Gold rises and erases most of the losses from the previous session. What is the reason?

Gold prices rose during trading on Tuesday, recovering most of the losses from the previous session, where gold lost about $8 in value after trading ended on Monday.

In this context, the increase in gold prices came amid a decline in the U.S. dollar; as a decrease in the dollar often boosts demand for dollar-denominated commodities, including gold.

On the currency market today, the U.S. dollar index decreased by about 0.08%, reaching 103.131 points; the greenback was affected by the Federal Reserve's statements issued yesterday; Neil Kashkari, a member of the U.S. Federal Reserve, believes that inflationary pressures are easing and that the labor market remains strong, which has reinforced expectations that the Federal Reserve may continue to lower interest rates again at the November meeting, negatively impacting the dollar and positively impacting gold.

Additionally, the worsening situation of the conflict in the Middle East continues to cast a positive shadow on gold as one of the most famous safe havens, as news reports indicated that Israeli officials reached an agreement on Tuesday regarding the response to Iranian missile strikes, awaiting official approval from the Cabinet to initiate the operation.

These developments have heightened market fears about the prolonged and escalating conflict potentially transforming into a regional war involving other parties, especially since Iran has already threatened any attempts to encroach upon the Islamic Republic, vowing to take strict action.

Current Gold Prices

Looking at Tuesday's trading, the spot prices for gold contracts are up about 0.24%, reaching $2,254.82 per ounce, while gold futures prices for December delivery rose by about 0.22%, recording $2,671.10 per ounce.