Gold fluctuated as investors tracked an escalation of risk in West Asia and digested weak US economic data. Israel and the US are ratcheting up pressure on Iran, sparking fresh speculation that Washington could be preparing for a more direct intervention in the conflict. Meantime, tepid US reports on retail sales, housing and industrial output bolstered the case for the Federal Reserve to cut rates this year if a rally in crude oil prices proves temporary and not a threat to inflation. The precious metal advanced by almost 4% last week as Israel opened its military campaign against Iran. Price gains have been muted since then, even as Israel and Iran continue to strike at each other.
