Gold edged higher, holding firmly above the key resistance point of $4,000 an ounce even as the widening conflict in the Middle East fuels expectations for tighter monetary policy.
Gold and silver rose on dip-buying, as traders monitored Middle East tensions for signs that higher energy costs could stoke inflation, putting pressure on the Federal Reserve to tighten policy.
A wave of profit taking in the gold market has brought a three-year bull run to an end, but there’s little evidence yet that investors are putting on large-scale short positions in anticipation of further declines.
