Geopolitical tensions are making the logic behind gold price increases more complex.

The President of Hartford Gold, Mark Baker, pointed out that rising tensions in the Middle East are bringing intertwined signals to the movement of gold. On one hand, uncertainty in the geopolitical sphere supports safe-haven demand for gold; on the other, higher energy prices could fuel inflation and strengthen the US dollar, thereby putting pressure on gold prices. Currently, the scale of gold purchases by central banks around the world has almost doubled compared to pre-2022 levels, with some countries increasing their gold reserves for 23 consecutive months. As a traditional safe-haven and value-preserving asset, gold’s movements have always been influenced by multiple factors. Amid the interplay of geopolitical conflicts, monetary policy, and central bank gold buying, the future trajectory of gold prices will continue to attract close attention from global markets.