Gold prices have edged higher mainly because the US Dollar (USD) has weakened against other major currencies. A stronger “risk-on” sentiment in markets has reduced demand for the dollar as a safe-haven asset. Investor optimism is being supported by expectations of a possible agreement to end tensions between Iran and the United States, along with signs of easing conflict between Israel and Lebanon as both sides prepare for negotiations. US President Donald Trump confirmed that talks between Israel and Lebanon are scheduled for later in the day. Positive economic signals have also boosted market sentiment. China’s first-quarter GDP growth came in at 5% year-on-year, surpassing the expected 4.8% and showing resilience despite geopolitical tensions. At the same time, strong earnings reports from major US banks like Bank of America and Morgan Stanley have pushed stock markets to record highs, further supporting a positive global outlook. In addition to the risk-friendly environment, the US Dollar has come under pressure due to political developments. Trump has intensified criticism of Jerome Powell, head of the Federal Reserve, even suggesting he could be removed from his role on the Board of Governors if he does not step down after his term as Fed Chair ends on May 15. This has raised concerns about the independence of the central bank. Looking ahead, gold’s next major move will largely depend on how geopolitical developments unfold in the Middle East, particularly the outcome of ongoing peace negotiations. Reports also suggest Iran may consider allowing safe passage for ships through parts of the Strait of Hormuz as part of its proposals in talks with the US.