Key takeawaysGold prices climbed close to $5,200 per ounce amid rising geopolitical tensions.New York gold futures rose 0.8% to $5,175.20 per ounce.Analysts say safe-haven demand linked to the Middle East conflict is supporting prices.However, higher-for-longer interest rates remain a potential headwind for gold.Gold Prices Rise as Investors Seek Safe-Haven AssetsGold prices moved higher as geopolitical tensions in the Middle East boosted demand for traditional safe-haven assets.New York gold futures increased 0.8% to $5,175.20 per ounce, bringing the precious metal closer to the $5,200 level.Investors have increasingly shifted capital toward defensive assets amid escalating conflict in the region and concerns over energy supply disruptions.Geopolitical Risk Supports Gold Despite Rate PressureAnalysts from ING Group noted that the ongoing conflict could strengthen gold’s risk premium even as monetary policy remains restrictive.According to ING, the war’s inflationary effects — particularly through higher energy prices — may reinforce expectations that central banks will keep interest rates elevated for longer.Higher rates typically weigh on gold because the metal does not generate yield, making interest-bearing assets more attractive to investors.Inflation Risks From Energy PricesEnergy markets have surged as geopolitical tensions threaten key oil supply routes in the Middle East.Rising energy prices can increase global inflation pressures, potentially forcing central banks to delay rate cuts.This dynamic creates a mixed outlook for gold:Negative factor: higher interest ratesPositive factor: rising geopolitical risk and safe-haven demandSafe-Haven Demand Creates Price FloorDespite the challenging rate environment, analysts believe geopolitical uncertainty continues to support gold prices.Elevated global tensions are helping maintain a risk premium in precious metals, which could prevent sharp declines even if interest rates remain high.As a result, the market may continue to see volatile but upward-biased price movements as investors balance monetary policy expectations with geopolitical risks.