Gold rose yesterday after Israel launched a series of attacks on Rafah in the south of Gaza, complicating the ongoing ceasefire talks with Hamas. Reports also showed that ceasefire talks between Israel and Hamas had made little progress.

Gold was also supported by increased speculation that interest rates would be lowered in the US following weaker-than-expected non-farm employment data on Friday, causing sharp losses in the dollar. However, the dollar came to its senses today.

Spot gold fell 0.1% to $2,322.65, while June delivery gold remained unchanged at $2,330.95.

Gold sees some safe haven demand amid escalating tensions between Israel and Hamas

Israel's strike on Rafah marked an escalation in the ongoing war with Hamas. This move increased safe-haven demand for gold, helping the yellow metal surpass the $2,300 level.

Little progress in ceasefire talks between the two sides also supported safe haven demand for gold.

Still gold; It remains more than $100 below record highs reached in April, when the threat of a possible war between Iran and Israel increased demand for a safe haven. However, since the tension between the two countries did not turn into a full-fledged conflict, the yellow metal subsequently experienced sharp declines.

Fed speakers expected to focus on interest rate cuts

While markets awaited new clues from the Fed on interest rates, the dollar compensated for last week's losses, limiting a possible major rise in gold.

FOMC members Thomas Barkin and John Williams said in their separate speeches that the Central Bank plans to cut interest rates this year, but they need more convincing that inflation has decreased.