Gold Rebounds As Dollar Dips Ahead Of Inflation Test - Commodities | PriceONN
(RTTNews) - Gold traded higher on Tuesday after falling around 3 percent to hit a two-week low in the previous session amid escalating Middle East tensions and hawkish Fed bets.

Global Tensions and Shifting Fortunes for Gold

After experiencing a sharp 3 percent decline to a two-week trough in the prior trading period, gold is now attempting a rebound. This recovery is unfolding against a backdrop of simmering geopolitical friction and evolving expectations regarding U.S. monetary policy. Spot gold saw a modest increase of 0.4 percent, reaching $4,018.05 per ounce, while U.S. gold futures also climbed by half a percent to $4,025.10.

The preceding session saw the U.S. dollar gain ground, fueled by heightened tensions between the United States and Iran. However, the greenback has since eased back. Simultaneously, benchmark 10-year bond yields across the Eurozone, the U.S. and the U.K. have ascended to their highest levels in eight weeks. This surge in yields coincides with crude oil futures climbing to a one-month peak.

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The catalyst for these market movements appears to be the announcement of a reinforced U.S. blockade impacting Iranian ports situated near the critical Strait of Hormuz. Adding to the geopolitical narrative, U.S. President Donald Trump declared America the "guardian of the Strait of Hormuz." His proposal to levy a 20 percent transit fee on cargo traversing this vital waterway introduces a significant potential disruption to global supply chains. This assertion was met with a pointed response from Iran's foreign minister, Seyed Abbas Araghci, who, via an X post, suggested Iran has always been and will forever remain the guardian of the Strait. He humorously noted that 20 percent is "too much" and that Iran would "be fair."

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