Gold prices held steady on Tuesday, May 5, following a nearly 2% decline in the previous session. The precious metal traded near $4,540 per ounce. Prices found technical support above the key $4,500 level.
Heightened tensions between the United States and Iran remain the primary market driver. Renewed hostilities in the Gulf region have increased concerns regarding rising energy costs and persistent inflation.
Gold continues to serve as a traditional inflation hedge. However, a strengthening dollar and the potential for prolonged high interest rates create market headwinds.