Gold Holds Decline as Mideast Flare-Up Raises Fed Rate-Hike Bets

Gold steadied after a two-day decline as the US and Iran exchanged strikes for the first time in a month. The escalation raises the risk of higher energy costs feeding into inflation and increasing pressure on the Federal Reserve to lift rates. This macro risk backdrop is likely to keep rates/inflation expectations in focus, supporting volatility across gold and broader markets.