Gold prices rose to around $5,180 per ounce on Tuesday, recouping losses from the previous session, as the US dollar weakened after President Trump suggested the conflict in the Middle East may end soon. Trump on Monday sought to reassure markets amid ongoing military tensions with Iran, describing the operation as a “little excursion.” In response, Iran stated that it will decide when the conflict concludes. Earlier concerns that a prolonged conflict in the region could trigger a spike in inflation had prompted traders to scale back expectations for Federal Reserve interest rate cuts this year. Markets now imply roughly 40 bps of easing by year-end, down from over 55 bps in late February. Investors now await key US inflation data, including the CPI and PCE, due later this week, for fresh cues on the Fed’s policy outlook.
