Gold prices saw a modest rise as traders awaited key US inflation data later in the week. The data could offer insights into the Federal Reserve’s plans for interest rates. Meanwhile, escalating tensions in the Middle East kept inflation risks on the radar. Bullion reached as high as $4,200 an ounce, reflecting these mixed signals.
Market expectations suggest a low likelihood of a rate hike at this month’s Fed meeting. Traders are anticipating a single rate increase before the end of the year. These projections are shaping investor sentiment across various asset classes.
Brent crude oil prices dipped toward $105 a barrel after a three-day climb. The earlier gains were driven by fears that Middle East conflict could disrupt global oil supply. The current pullback indicates some stabilization in market expectations.