Gold Holds Firm Above $4,000 Amid Middle East Tensions

Gold prices have stabilized above $4,000 an ounce despite rising tensions in the Middle East. The conflict has sparked concerns about tighter monetary policy and higher borrowing costs, which could be a headwind for gold.

The US Federal Reserve is set to meet next week, with swap traders currently seeing a 30% chance of interest rate hikes. At least one hike is priced in by the end of the year, according to current market expectations.

Analysts at Commerzbank AG believe that gold has largely held its ground despite strongly rising oil prices and renewed concerns about interest rates. They note that next week's Fed meeting is unlikely to move the gold price much.

The US announced tariffs of 10-12.5% on imports from most major trading partners, citing forced labor in their supply chains. This move has added to the uncertainty surrounding gold prices.