Gold eased to about $5,130 per ounce on Tuesday, extending the previous session’s losses, after President Trump suggested that the conflict in the Middle East could end soon. On Monday, Trump sought to allay concerns over ongoing military tensions with Iran, characterizing the operation as a “little excursion” and a “short-term” effort, which helped temper geopolitical risk sentiment.
Earlier fears that a prolonged regional conflict could fuel inflation had already led traders to scale back expectations for Federal Reserve interest rate cuts this year. Meanwhile, investors are now looking ahead to key US inflation releases, including CPI and PCE data due later this week, for further signals on the Fed’s monetary policy trajectory.
