Gold Recovers Slightly, But Remains Near Two-Month Low
Gold prices recovered some of their losses and traded around $4,330 an ounce on Monday, after earlier touching their lowest level since March 23.
However, gold remained near its weakest close since late last year, as investors assessed the latest developments in the Middle East.
Israel agreed to halt attacks on Iran at President Donald Trump's request, but continued its offensive in Lebanon. Meanwhile, tensions on the Israel-Lebanon border escalated, with reports of artillery exchanges. Trump called for an immediate ceasefire, while Tehran suspended operations against Israel but warned against attacks in southern Lebanon.
High oil prices, inflation concerns, and strong U.S. jobs data last week boosted market expectations for a Federal Reserve interest rate hike. According to CME FedWatch, the market now rates a 70% chance of a December rate hike, up from 45% the previous week.
Investors will await key inflation data, including the CPI on Wednesday and the PPI on Thursday, for further indications on the direction of monetary policy and its implications for the gold market.
Source: Newsmaker.id