Gold settles higher as ME developments remain in focus

Gold edges up but inflation fears caps gains

Gold prices rose on Tuesday as investors assessed the prospects of a fragile ceasefire in the Middle East and the potential impact of the conflict on inflation and interest rate forecasts.

Gold futures for June delivery increased 0.77% (or $35.20) to $4,568.50 per ounce.

Meanwhile, silver futures for May delivery edged down slightly by 3.60 cents to $73.108 per ounce.

The positive performance of gold came alongside a stable US dollar and lower oil prices, after the US launched a naval mission to restore shipping in the Strait of Hormuz, despite Iran carrying out military operations in the Middle East earlier in the week.

Gold prices have been under pressure since the start of the conflict due to concerns that rising energy disruptions could fuel inflation and prompt tighter monetary policy from global central banks.