Gold prices pushed higher again on Thursday, with investors returning to the precious metal as US bond yields eased and optimism surrounding a possible US-Iran peace agreement lifted broader market sentiment. The rally saw gold climb to a two-week high, reinforcing the strong long-term outlook many analysts continue to hold for bullion.
Spot gold surged above US$4,750 an ounce after gaining more than 3% in the previous session, while US gold futures approached US$4,770 in New York trade. The move comes as Treasury yields retreat from recent highs, making non-yielding assets such as gold more attractive to investors.
Markets have been closely watching the US 10-year bond yield, which recently pulled back from near 4.5% to around 4.33%. Lower yields typically provide support for gold, particularly during periods of economic uncertainty and inflation concerns.
At the same time, reports that Iran is reviewing a US-backed proposal aimed at ending the Middle East conflict have helped calm fears over energy supply disruptions through the Strait of Hormuz. The conflict had previously pushed inflation fears higher and pressured central banks to delay interest rate cuts.
While easing geopolitical tensions would normally reduce safe-haven demand, some analysts believe a peace agreement could actually remove pressure from financial markets and allow gold and silver to resume their broader secular bull market.
Technical analysts continue to watch the US$4,600 level closely, which is acting as a major support zone for gold. Strong buying interest has repeatedly emerged near this level, reinforcing confidence that investors still view dips as long-term buying opportunities. A sustained move below US$4,500, however, could weaken short-term momentum.
Despite ongoing volatility in interest rate markets, the structural outlook for gold remains strong. Persistent inflation, growing global debt, geopolitical uncertainty and concerns over currency debasement continue to underpin demand for physical precious metals.
Several major market strategists believe gold could still move substantially higher over the coming months. Some analysts are forecasting the next major leg higher could eventually see prices challenge the US$6,000 level if central banks resume easing policies and investor demand accelerates.
For now, investors remain focused on upcoming US economic data and signals from the Federal Reserve, with markets continuing to debate when interest rate cuts may finally begin.
