Gold dipped as a flareup in Middle East hostilities raised inflation risks, even as the Federal Reserve is still expected to keep interest rates steady in the near term. Bullion was trading at around $4,120 an ounce, after rising 0.4% in the previous session to snap three days of declines.
Oil rose after a US Department of State order for non-emergency US government employees and their families to leave Saudi Arabia raised concerns of an escalation. A drone strike on a Saudi Aramco field also left two people dead, adding to the sense of rising regional risk.
Traders are weighing these geopolitical signals against the outlook for monetary policy. Gold is often viewed as a hedge against inflation and instability, so the Middle East developments have offered some support, but the prospect of steady rates has limited the metal's gains.
The mixed picture left gold trading slightly lower as investors balanced safe-haven demand against expectations for the Fed's next move.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing