Gold Holds Near $4,500 Per Ounce on Tuesday Amid Middle East Tensions

Gold prices stabilized near $4,500 per ounce on Tuesday, following a nearly 2% decline the previous trading day, as escalating Middle East tensions fueled energy price gains and inflation concerns. According to reports, U.S. military forces repelled an Iranian attack while escorting two U.S.-flagged vessels through the Strait of Hormuz, while the UAE reported intercepting Iranian cruise missiles and attributed a fire at Fujairah port to Iranian drone strikes. The latest escalation has raised doubts about the viability of a four-week ceasefire agreement, with markets bracing for potential central bank rate increases to combat inflation, pushing oil prices and global bond yields higher. Gold has declined nearly 15% since late February.