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03.03.202600:29:48UTC+00Gold Rises as Mideast Tensions Escalate

Gold climbed to roughly $5,350 per ounce on Tuesday, extending its rally for a fifth straight session as mounting tensions in the Middle East bolstered safe-haven demand. On Monday, President Trump warned that the United States would continue striking Iran until it no longer posed a threat, indicating that the conflict could stretch on for a month or “far longer.” In response, Iran declared the Strait of Hormuz closed and threatened to target any vessel attempting to pass through the vital energy chokepoint.

The intensifying conflict sent oil prices sharply higher, heightening worries about inflationary pressures in the US. That, in turn, triggered a sell-off in Treasuries and led investors to scale back expectations for additional interest rate cuts by the Federal Reserve. Markets now anticipate the next Fed rate reduction around September, later than previously expected.

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