Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
South Korea’s KOSPI Triggers Trading Curb as AI Chip Stock Selloff Deepens 
Gold prices fell sharply on Tuesday as investors adopted a cautious stance ahead of crucial U.S. inflation reports that could influence Federal Reserve interest rate policy. At the same time, escalating geopolitical tensions in the Middle East added uncertainty to global financial markets.
Spot gold declined 1.6% to $4,260.20 per ounce, while U.S. gold futures dropped 1.8% to $4,284.09 per ounce. Although gold had previously reached its lowest level since late March, losses were partially trimmed before the end of the trading session.
Market attention is now focused on the upcoming U.S. Consumer Price Index (CPI) report for May, followed by the Producer Price Index (PPI) release. These inflation indicators are expected to provide important clues about the Federal Reserve’s next policy moves. Strong labor market data released last week, combined with concerns that rising oil prices linked to the Iran conflict could fuel inflation, have strengthened expectations that the Fed may keep interest rates elevated for longer or potentially raise rates again.
Analysts at JPMorgan noted that recent employment data supports the view that global business activity remains resilient. They forecast another increase in U.S. inflation, projecting headline CPI growth of 0.58% month-over-month and 4.3% year-over-year. Core inflation is expected to rise 0.27% monthly and 2.9% annually. Such figures could reinforce expectations for tighter monetary policy, a factor that typically pressures gold prices because the precious metal offers no yield.
Meanwhile, geopolitical developments also weighed on investor sentiment. U.S. President Donald Trump stated that Iran had shot down a U.S. Apache helicopter operating near the Strait of Hormuz and promised a response. According to Trump, both pilots were safely rescued, but he emphasized that the incident would require action from the United States.
The remarks reduced optimism that Washington and Tehran were close to achieving a diplomatic breakthrough. Earlier hopes for regional de-escalation had emerged after Iran and Israel signaled a halt in hostilities following recent military tensions involving Hezbollah in Lebanon.
As traders await inflation data and monitor developments in the Middle East, gold prices are likely to remain highly sensitive to both economic and geopolitical headlines throughout the week.
