World gold prices increased in the context of a British cargo ship being attacked in Yemeni waters. Since then, financial investors are concerned about escalating geopolitical tensions, which has prompted them to put capital into gold to preserve capital.
On the other hand, the market expects gold trading to be vibrant when the top consumer country, China, resumes commercial activities after the Lunar New Year holiday.
Meanwhile, the USD is affected by growing speculation that the Federal Reserve (Fed) will keep interest rates high for longer. Therefore, gold's upside potential could be created from a decline in USD prices, if Fed officials are soft in cutting interest rates.