The conflict between Israel and Hezbollah escalated over the weekend, with Hezbollah launching at least 340 rockets, missiles, and drones on Sunday in retaliation for a massive airstrike by Israel on Saturday that left 29 people dead in Beirut. As demand for safe-haven assets surged, gold prices soared to $2,721 in early trading on Monday. (Background: Safe-haven demand skyrockets! Gold rose 6% in a week to return to $2,712; how will it affect Bitcoin?) (Additional context: Hezbollah rockets breach the 'Iron Dome' air defense system! Israel's third largest city was attacked, leading to at least 10 injuries) With the war between Ukraine and Russia, as well as the conflict between Israel and Hezbollah rapidly escalating last week, investor sentiment for safety increased, causing gold, which had fallen to a two-month low of $2,536 after Trump's victory, to surge. Spot gold closed at $2,716 on Friday, marking a new high since November 6, and on Monday, gold prices briefly soared to $2,721. Hezbollah launched heavy rockets at Israel. Al Jazeera reported that on the 24th, Hezbollah fired at least 340 rockets, missiles, and drones in retaliation for Israel's extensive attack on Beirut on Saturday, marking Hezbollah's most intense attack in months. This time, Hezbollah targeted the Ashdod naval base in southern Israel for the first time, as well as attacking the country's largest metropolitan area, Tel Aviv, and nearby military facilities. Air raid sirens went off in central, northern, and eastern Tel Aviv. The Israeli military intercepted most of the shells, but some still reached their targets, causing damage. The Israel Defense Forces stated that a direct rocket attack on one neighborhood caused homes to catch fire and become ruins. Medical facilities reported that at least 11 people were injured in the attack, one of whom was in moderate to serious condition. Israel's extensive airstrike on Beirut has intensified recently, with Israel launching one of the most severe attacks on the city center of Beirut on Saturday, resulting in at least 29 deaths and 66 injuries. On Sunday, Israel continued large-scale airstrikes on 12 Hezbollah command centers in the southern suburbs of Dahieh. Lebanese Prime Minister Najib Mikati strongly condemned the airstrikes, stating that Israel was openly rejecting the US-led ceasefire agreement at the cost of Lebanese blood. There is a glimmer of hope for a ceasefire agreement between Israel and Hezbollah. However, earlier today, US media Axios reported that Israel is about to reach a ceasefire agreement with Hezbollah. Insiders indicated that the Israeli government might announce it this week, and an Israeli official stated, "The direction is positive, but there are still some unresolved issues, so the agreement has not been finalized." EU's High Representative for Foreign Affairs and Security Policy, Josep Borrell, stated on Sunday that the US ceasefire agreement is only awaiting final approval from Israel. After meeting with Lebanese officials in Beirut, he said, "We must pressure the Israeli government and continue to put pressure on Hezbollah to accept the US ceasefire proposal." It is reported that the ceasefire agreement will lead to the withdrawal of Israeli troops from southern Lebanon, the deployment of the Lebanese army in a buffer zone near the border, and the transfer of heavy weapons by Hezbollah militants north of the Litani River, ultimately allowing hundreds of thousands of civilians on both sides of the border to gradually return home. Borrell also called for an immediate ceasefire from both sides and full implementation of UN Security Council Resolution 1701. He also stated that the EU plans to provide €200 million to support the Lebanese army in strengthening its forces in the south. With the surge in demand for safe-haven assets, gold prices recorded the largest weekly increase in nearly two years. According to Hu Tong Finance, although Israel is close to agreeing to a ceasefire agreement with Hezbollah, and Trump nominated Bentsen for Treasury Secretary over the weekend, advocating for tax reform and deregulation, analysts believe that the likelihood of Trump implementing strict tariff policies after taking office has decreased. This nomination is favorable for the stock and bond markets, which may limit US bond yields and the dollar's movement. However, as the US economy remains resilient, expectations for a Federal Reserve interest rate cut in December have decreased, which will also limit the dollar's downward space. The dollar index hit a two-year high of 108 last Friday, but gold prices continued to rise, breaking $2,700 for the first time in over two weeks, with a cumulative increase of nearly 6% last week, marking the largest weekly increase in nearly two years. Experts believe the reason is that the demand for safe-haven assets outweighed the effects of a stronger dollar and weakened expectations for a US interest rate cut in December. Gold prices are expected to break $2,750 in mid-December. Allegiance Gold COO Alex Ebkarian stated that the Russia-Ukraine conflict seems to be expanding into a conflict between Russia and the United States. This will definitely enhance the short-term appeal of safe havens, combined with the continuous change in Federal Reserve policy and the inflation risks brought about by Trump's potential trade tariff policies, the outlook for gold remains strong, with expectations of reaching $2,750 in mid-December. FXStreet analyst Christian Borjon Valencia stated that the decline in US bond yields and the rise in gold prices to a two-week high continue to reflect the geopolitical situation, maintaining gold buying interest. The escalating geopolitical concerns, including the possibility of the Russia-Ukraine conflict expanding, are driving the demand for gold as a safe haven. If gold prices break through $2,750, the next step may be to retest the historical high of $2,790. Goldman Sachs believes that $3,000 is the next major resistance level. Notably, Fedwatch data shows that expectations for a December rate cut have weakened significantly, dropping from 82.5% a week ago to 56.2%. Additionally, this week, the US October CPI data will be released, and the geopolitical conflicts in the Middle East and Ukraine will also be the focal point of the market.