Gold traded around $5,010 per ounce on Tuesday, hovering near its lowest level in almost a month, as expectations for imminent US interest rate cuts weakened amid mounting inflation concerns tied to the conflict in the Middle East. The US-Israeli war with Iran has entered its third week, with President Trump warning that the US could directly target Iran’s oil infrastructure on Kharg Island. The ongoing hostilities have kept energy prices elevated, stoking fears of renewed inflationary pressures and leading investors to pare back their forecasts for US monetary easing this year.
The Federal Reserve is widely expected to leave interest rates unchanged at its upcoming meeting, and other major central banks — including the ECB, BOE, and BOJ — are also anticipated to maintain their current policy stances. At the same time, investors are closely watching reports of a potential multinational naval coalition being formed to escort commercial vessels through the region, an initiative aimed at protecting critical energy trade routes.
