Gold Trading Alert: The situation in the Middle East is changing dramatically! Gold prices soared by $15 at one point, topping above $2,400!

At the beginning of the Asian market on Monday (July 29), spot gold rose slightly, soaring nearly $15 at one point, breaking through the 2,400 mark to $2,303.02 per ounce, and is currently trading near $2,397.15 per ounce. Gold rose 1% to close at $2388.15 an ounce on Friday, as United States PCE data failed to change expectations for a Fed rate cut in September, with dip buying pouring in to support gold prices, despite stronger-than-market PCE data. In addition, concerns about the geopolitical situation in the Middle East and the uncertainty of the United States election have led to a rebound in safe-haven demand for gold.

This week will usher in the Federal Reserve interest rate decision, the Bank of Japan decision and the United Kingdom Bank interest rate decision, and will also usher in the euro area second quarter GDP, China's official manufacturing PMI, United States JOLTs job vacancies, 22:00 United States ISM manufacturing PMI, United States non-farm payrolls report and other important economic data, can be described as a super week, investors need to make time arrangements and position adjustments in advance.

Gold prices rose 1% on Friday, as optimistic expectations of a Fed rate cut in September pushed United States Treasury yields lower after data showed United States prices rose only slightly in June.

Forex market analyst Fawad Razaqzada said: "Mixed United States data suggests that inflationary pressures and economic activity are weakening, paving the way for the Fed to cut interest rates twice this year." "

Fed policymakers got fresh evidence of progress in the fight against inflation, which also boosted expectations that next week's meeting will signal a rate cut starting in September.

The United States Commerce Department's Bureau of Economic Analysis said the personal consumption expenditures (PCE) price index edged up 0.1% in June after remaining unchanged in May.

Excluding the volatile food and energy segments, the core PCE price index rose 0.2% month-on-month in June, after rounding up 0.182%. The increase before rounding in May was revised upwards to 0.127% versus 0.083% previously.

Core PCE rose 2.6% year-on-year in June, in line with May's increase. Core PCE rose 2.3% annualized in the three months to June, a sharp slowdown from 2.7% in May.

The yield on the 10-year United States Treasury note fell to its lowest level in a week, closing at 4.197% after the data.

Meanwhile, India, the world's second-largest consumer of gold, cut import tariffs on gold and silver earlier this week, boosting the country's physical demand. Last week, India's gold premium jumped to its highest level in a decade.

Everett Millman, chief market analyst at Gainesville Coins, said. "Any growth in India or China will have an external impact on overall demand... I think (India's) move to reduce tariffs will only have a positive impact on demand,"

In addition, in recent days, Israel and Lebanon have "misfired", and the market's concerns about the escalation of tensions in the Middle East have risen, providing further upward momentum for gold prices in the short term.

Concerned about the situation in the Middle East, Israel and Lebanon are at risk of intensifying the conflict

According to the latest information, the Israel Security Cabinet has authorized Israeli Prime Minister Benjamin Netanyahu and Israeli Defense Minister Gallant to carry out military strikes against the Lebanon Allah Party in response to the rocket attack by the Lebanese Allah Party on the Golan Heights town of Mejidar Shams on the 27th.

On July 28, local time, the Israel Foreign Ministry issued a document saying that on the 27th, the Lebanon Allah Party launched a rocket attack on the Israeli-occupied Golan Heights town of Mejidar Shams, killing 12 children, a move that had "crossed all red lines". Earlier, the Lebanon Allah party said it had "nothing to do with the attack". Late at night on the 28th local time, Israeli warplanes launched air strikes on areas in southern Lebanon near the temporary border between the two countries.

Israeli warplanes launched overnight air strikes on towns in the Tyre region of southern Lebanon, including an Israeli attack on a house in Al Shamari in Burchs, resulting in injuries to local residents. Israeli forces also launched an attack on Terhaifa, causing serious damage to local crops. In addition, Israeli drones attacked a house in the village of Taraya in the Baalbek region of central Lebanon, causing damage to the house.

Two security sources said on July 28 that the Lebanon Allah Party was on high alert, clearing a number of key locations in the east and south of Lebanon in case Israel could escalate the conflict.

Lebanon Al-Manar TV reported on July 28 that Israel fighter jets attacked at least five towns and villages in southern Lebanon after accusing the Lebanon Allah Party of shelling the Golan Heights, killing 12 people. Israel warplanes "airstriked the towns of Siam and Kafarkira in southern Lebanon" and "on the outskirts of the towns of Brazil and Burj al-Shimali in the Tyre district of southern Lebanon". In addition, they fired a rocket at the village of Tijerhafa.

On the 27th local time, after a rocket attack on a town in the Golan Heights occupied by Israel, Iran's ambassador to Lebanon Armani posted on social media that Iran has been committed to easing regional tensions, and Iran neither believes that military operations in Lebanon and related areas will escalate, nor does Iran intend to promote its escalation. At the same time, Iran is not afraid of escalation in the relevant regions.

On July 28, local time, Iran Foreign Ministry spokesman Kanaani issued a statement strongly warning Israel not to use the "Majdar Shams incident" as an excuse to carry out new adventurous actions against Lebanon. Kanaani pointed out that it is the responsibility of the international community, especially the UN Security Council, to support regional stability and security, including Lebanon, and to combat Israel's adventurous behavior. He stressed that Israel's actions could lead to continued instability, insecurity and war in the region. Kanaani suggested that the United States Government should not continue to provide weapons of mass destruction to Israel, but should fulfill its international moral and responsibility to act for world peace and security.

EU High Representative for Foreign Affairs and Security Policy Josep Borrell released a message on social media on the 28th local time, strongly condemning the attack on the Golan Heights. He said an independent international investigation into the attack was needed and urged all parties to exercise restraint and avoid an escalation of the conflict.

A White House National Security Council spokesman said United States condemned the attack on the Golan Heights and reaffirmed its willingness to provide "unwavering support" to Israel to defend itself against future attacks. He added that United States's support for Israel "firmly opposes all terrorist organizations that Iran support," including the Lebanon Allah Party.

Judging from the current situation, the market's concern about the geopolitical situation in the Middle East has increased significantly, which is expected to provide further upward momentum for gold prices. However, investors should also pay attention to the news related to the situation in Russia and Ukraine and the ceasefire talks in Gaza.

According to United States media reports on July 26, officials from Qatar, Egypt, United States and Israel will hold talks in Rome, the capital of Italy, on the 28th of this month to discuss the issue of a ceasefire agreement in the Gaza Strip. The report quoted United States and Israel officials as saying that Qatar's Prime Minister and Foreign Minister Mohammed, Egypt's General Intelligence Directorate Kamal, Israel's Intelligence and Secret Service (Mossad) Director Barneya, and United States CIA Director Burns will attend the talks. However, the sources do not expect that the talks will not discuss the differences between the parties in the negotiations, but will focus on the guidelines and strategies for continuing the negotiations.

The Russia Ministry of Defense reported on the 26th that the Russian army used long-range precision-guided weapons and attack drones from July 20 to 26 to launch 33 rounds of large-scale strikes on temporary deployment points of Ukrainian troops and foreign mercenaries, military trains, armored vehicle production and repair facilities, Ukrainian weapons and equipment warehouses, fuel warehouses, etc. The Russian army shot down a Mi-8 helicopter and hundreds of drones of the Ukrainian army in the past week. On the same day, the General Staff of the Armed Forces of Ukraine issued a combat report saying that 78 battles took place in the frontline areas that day.