Gold prices rose more than 1% on Thursday, driven by a wave of bargain buying after the precious metal fell to its lowest level in a week, as markets continue to monitor escalating developments in the Middle East.

Silver prices rose 3.4% to $60.25.

Spot gold gained 1.3% to $4,130.58 per ounce, while US gold futures for August delivery rose 1.4% to $4,140.80.

The rally came amid escalating geopolitical tensions in the Middle East and a 62% probability of a US interest rate hike in September, while HSBC lowered its average gold price forecast for 2026 to $4,560 and for 2027 to $4,925 per ounce, compared to its previous estimates of $4,864 for this year and $5,000 per ounce.

Other precious metals also posted notable gains, with silver rising 3.4% to $60.25, platinum up 2.3% to $1,615.25, and palladium increasing 3.3% to $1,253.25 per ounce.