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Back Fundamental analysis
Gold to take different path
The armed conflict in the Middle
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The armed conflict in the Middle East has been another reminder that the recent XAU/USD rally was driven largely by speculative demand. Instead of rising on US and Israeli military action against Iran, gold rode a roller coaster. One trigger for selling the metal may have been a reduced likelihood of a Fed funds rate cut. But a crowd exit has also played its part. Capital flow dynamics into funds Rising geopolitical risk usually increases demand for gold as a safe-haven asset.
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Marek Petkovich,
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© 2007-2026
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