Gold hovers near $4,360 as Middle East tensions sustain haven demand

  • Gold climbed above $4,350 an ounce on Tuesday after the previous session's losses.
  • Oil prices fell for four straight sessions amid Middle East diplomatic efforts and continued energy flows.
  • Austan Goolsbee and Alberto Musalem highlighted persistent inflation risks and possible further rate increases.

Gold climbed above $4,350 an ounce on Tuesday after losses in the previous session, with a four-day drop in oil prices easing inflation concerns and reducing expectations for further Federal Reserve rate increases. The metal remained supported by geopolitical risks, central-bank buying and concerns over fiscal sustainability and currency debasement. Oil prices fell as diplomatic efforts to end the Middle East conflict intensified and energy flows from the region continued. President Donald Trump was scheduled to address the UN General Assembly in New York and may meet Iranian President Masoud Pezeshkian. Chicago Fed President Austan Goolsbee warned that the central bank could not disregard persistent supply shocks, while St. Louis Fed President Alberto Musalem said further rate increases may be needed to meet the inflation goal. Investors awaited remarks from Fed officials John Williams and Tom Barkin.

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