Gold prices are rising as the market pays attention to developments in the Middle East and reassesses interest rate expectations.

Gold prices rose in early Asian trading, influenced by a weaker dollar and declining U.S. Treasury yields, following an overnight increase. Efforts to resolve the crisis in the Middle East will remain a major driver for the precious metal. Throughout the conflict, gold prices significantly dropped as oil shocks boosted rate hike expectations while safe-haven flows supported the dollar. Konstantinos Chrysikos from Kudo.com stated that progress in resolving the crisis could lower bond yields and benefit gold, while any setbacks might increase demand for the dollar and put pressure on the precious metal. He mentioned that the market still expects the Federal Reserve to raise interest rates at its next meeting, but the probability of keeping rates unchanged is risinga shift that could support gold prices. Upcoming U.S. employment data may influence whether a more dovish outlook will gain traction. Spot gold rose 0.6% to $4,276.31 per ounce.