Despite the ongoing uncertainty in the Middle East, the price of gold continues to rise slightly.

Despite the rebound in oil prices after the US launched a new round of attacks on Iran, and ongoing concerns in the market about inflation and high interest rates lasting longer, the price of gold continues to rise. In early trading, New York futures gold rose by 0.2% to $4,532.30 per ounce. The high oil prices may exacerbate inflation and reinforce expectations that interest rates will remain high for a longer period. Although gold is widely seen as a hedge against inflation, higher borrowing costs often weigh down on this non-yielding asset. The market currently fully reflects the expectation of a 25 basis point rate hike by the Federal Reserve in December.