Tensions in the Middle East and a weakening dollar have boosted gold prices

Gold prices rose on Wednesday amid fears of escalating conflicts in the Middle East, prompting investors to seek the precious metal as a safe haven. A short-term decline in the value of the US dollar and US Treasuries helped support gold prices.

Gold was up 0.3 percent in spot trading at $2,389.38 an ounce by 10:14 GMT, not far off Friday's all-time high of $2,431.29. U.S. gold futures were down 0.1 percent at $2,405.10.

Lukman Odunuka, senior research analyst at FXTM, said: “From a technical perspective the precious metal is seen as overbought… Optimistic investors are taking their strength from the overall uncertainty in the markets as geopolitical factors cast a shadow over data and monetary. Policy expectations.”

The dollar and ten-year Treasuries fell from their highest levels in five months, making the yellow metal's price in U.S. currency less attractive to holders of other currencies.

The Federal Reserve, including Chairman Jerome Powell, refused to give any indication of when to start cutting interest rates, and said monetary policy should remain tight for a longer period of time.

As for other precious metals, silver rose 1.4 percent to $28.47 an ounce in spot trading. Platinum was up 0.1 percent at $957.50 and palladium was up 0.8 percent at $1,021.43.

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