Gold steadies amid anticipation of Middle East developments

Gold prices stabilized at the start of last week’s trading near $4,380 per ounce, as markets monitored developments in the Middle East war and their implications for oil prices, inflation, and the trajectory of global interest rates. Spot gold remained nearly unchanged at $4,379.74 per ounce during yesterday’s trading, after hitting a one-week high on Friday, while U.S. gold futures for December delivery fell 0.1% to $4,419.40. Although gold is traditionally viewed as a hedge against inflation, rising interest rates can dampen its appeal by increasing the opportunity cost of holding non-yielding assets. Spot silver rose 0.8% to $66.76 per ounce, platinum climbed 0.2% to $1,804.33, and palladium increased 0.7% to $1,311.65.