Gold pared earlier losses to trade around $4,330 an ounce on Monday, rebounding from its lowest level since March 23 but still hovering near its weakest close since late last year, as investors weighed the latest developments in the Middle East. Israel agreed to halt strikes on Iran at the request of US President Donald Trump, while vowing to maintain heavy bombing in Lebanon. At the same time, tensions intensified along the Israel–Lebanon border, with reports of mutual shelling.
Earlier, Trump had called for an immediate ceasefire, and Tehran suspended its operations against Israel while warning against attacks on southern Lebanon. Adding to market jitters, rising oil prices and last week’s robust US employment report have stoked inflation concerns, reinforcing expectations of another Federal Reserve interest rate increase. According to the CME FedWatch tool, markets now assign roughly a 70% probability to a December rate hike, up from about 45% a week earlier.
Investors are now turning their attention to key US inflation releases, including Wednesday’s Consumer Price Index (CPI) and Thursday’s Producer Price Index (PPI), for additional signals on the Fed’s policy path.
