Gold Plunges Below $5,000 as Mideast War Fuels Oil Prices, Dims Rate Cut Hopes

• Gold slid below $5,000 an ounce, hitting $4,986.34, as the Middle East war entered its third week, driving up oil prices.
• Elevated oil prices and inflation concerns have significantly reduced expectations for US Federal Reserve interest rate cuts.
• Crude prices surged following US attacks on Iran's oil hub and Tehran's retaliatory strikes on Arab states' energy infrastructure.
• Uncertainty over the war's duration and mixed signals from leaders like Donald Trump add to market volatility.
• While higher borrowing costs typically hurt gold, potential stagflation could make it a long-term store of value.