Gold prices rose on Tuesday after falling for two days due to rising geopolitical tensions in the Middle East. Reports suggested that Lebanese troops withdrew from the border with Israel as an Israeli ground invasion seemed likely after Israel killed Hezbollah's leader. This escalation increased demand for safe-haven assets like gold. However, gains were limited by Fed Chair Powell's comments that the recent large interest rate cut should not signal future aggressive cuts. He hinted at smaller future cuts of a quarter percentage point. The odds of another 50-basis-point rate cut in November have now dropped to 37% from over 50% last week.
