Gold Price Rises Toward $3,375 on Middle East Tensions, Fed Rate Cut Hopes

Gold Climbs Toward $3,375 Amid Geopolitical Unrest

Gold (XAU/USD) prices rose sharply to around $3,375 in the early Asian session on Monday, buoyed by heightened geopolitical tensions in the Middle East and renewed expectations of a US rate cut.

Safe-Haven Demand Surges After US Bombs Iran

The rally follows US President Donald Trump's announcement that the US military bombed three Iranian nuclear sites — Fordo, Natanz, and Isfahan — marking a major escalation in the Israel–Iran conflict.
This development has driven demand for safe-haven assets, with Gold being the primary beneficiary amid uncertainty and growing fears of a broader regional war.

Fed’s Dovish Signal Fuels Further Upside

Adding to Gold’s bullish tone, Federal Reserve Governor Christopher Waller stated last Friday that the Fed is prepared to cut interest rates as early as July, citing increased global uncertainty and geopolitical instability.
Lower rates typically weaken the US Dollar, making USD-denominated commodities like Gold cheaper for foreign buyers, thereby boosting demand.

Market Focus Turns to US PMI Data

Looking ahead, traders are watching the preliminary S&P Global US PMI data for June, due later on Monday. A weaker-than-expected print could reinforce the Fed’s dovish bias, offering additional tailwinds to Gold.

Internal Linking Suggestions (for Tredu.com):

• Why Gold Is a Safe-Haven Asset
• US Fed Rate Cuts: What It Means for Markets
• Live Gold Price Chart and Technical Levels