Gold held above $4,300 an ounce on Tuesday after Iran and Israel agreed to halt attacks on one another, easing concerns over a broader conflict that could fuel energy-driven inflation. President Donald Trump said both parties were pursuing an immediate ceasefire and that final negotiations were progressing.
Even so, bullion traded near its lowest level since late March as the US dollar and Treasury yields climbed in the wake of stronger-than-expected US jobs data, bolstering expectations that the Federal Reserve could raise interest rates by year-end. Markets are now assigning more than a 40% probability to a quarter-point hike in December, up from about 14% a month earlier.
Investors are also awaiting this week’s US CPI and PPI releases for further clues on the Fed’s policy path.
