Gold Holds Above Five Thousand Mark as Middle East Naval Risks Persist

Safe Haven Bid

Traders are reluctant to reduce long gold positions heading into the weekend as the US maritime advisory for the Strait of Hormuz remains active. The threat of localized conflict is currently outweighing the hawkish sentiment surrounding the new Federal Reserve leadership.

Inflation Hedge

Renewed sticky inflation data in the US is also providing a tailwind, as investors view gold as the ultimate store of value while sovereign debt yields remain volatile.