Gold Prices Near Two-Month High Amid Ongoing Middle East Tensions

The XAU/USD price continues to climb, nearing its two-month high. The market sentiment remains cautious due to ongoing tensions in the Middle East. Spot Gold is trading near its multi-week peak at $4,371.79.

The escalation of the naval blockage in the Strait of Hormuz over the weekend has led to a surge in the US Dollar early in the Asian session. However, as stocks perform well and hopes for a Federal Reserve interest rate hike decrease following the poor employment report on Friday, the USD sheds ground.

The Reserve Bank of Australia's monetary policy decision is expected on Tuesday, with a hold widely anticipated. The central bank will also present fresh forecasts. On Wednesday, the US Consumer Price Index (CPI) will be released, with annual inflation forecast at 3.4% in July and core annual reading at 2.5%. These figures could support a no rate move in September, potentially leading to additional XAU/USD gains.