Gold futures slip as fears of a wider fallout from the Israel-Iran conflict ease. Futures are down 0.3% at $3,406.50 a troy ounce. The precious metal is showing little movement Tuesday after a drop of 1.

Tensions in the Middle East are driving Gold's rise. Iran and Israel are exchanging attacks. Rising conflict prompts traders to seek gold as a haven. Fed policy also plays a key role. Traders expect a rate cut if US inflation drops and growth weakens.

Gold prices on the Multi Commodity Exchange (MCX) have surged amid rising tensions in the Middle East, with analysts warning that any further escalation could push rates to ₹1.02–1.05 lakh per 10 grams.

If prices go up, Fed officials may be inclined to raise its benchmark rate, raising borrowing costs for businesses and consumers. That could lead to businesses to cut jobs, particularly in the high-growth tech sector, and force Americans to pull back on spending, which drives more than 70% of economic activity in the U.S.

This rise is also lifting the commodities sector, which is headed for its second consecutive weekly gain, with the Bloomberg Commodity Total Return Index ( DJP) up 3.3% this month and year-to-date returns in U.S. dollar exceeding 9%.

The precious metal is forecast to hit US$3,400 an ounce by the end of 2025. Read more at straitstimes.com. Read more at straitstimes.com.

Stocks rose and oil prices retreated Monday as fears of a wider Middle East conflict eased even as Israel and Iran pounded each other with missiles for a fourth day.