Gold Stands Tall Amid US-Iran Tensions and Fed Rate Hike Fears

Gold has shown resilience in the face of uncertainty, managing to withstand the recent US bombing campaign against Iran without breaking below $3900. This stability is a positive sign for gold bulls, who are also buoyed by reports that China has resumed buying. The market's anxiety about a potential Federal Reserve rate hike remains, with a 33% implied probability of a rate increase in this week's meeting.

However, some analysts believe that even if the Fed does raise rates, it could set the stage for lower interest rates down the line. This could be good news for gold, which tends to perform well in environments where central banks are more dovish. Meanwhile, the situation in Iran remains a wild card, with the latest bombing campaign potentially giving Tehran leverage to negotiate better terms.

For now, investors will be watching for signs of Asian buying and any indications that the conflict is moving towards resolution. Gold has already responded positively, rising $58 to $4110, but it's too early to declare victory in this ongoing saga.