Gold fluctuates as traders assess Fed rate path amid Mideast tensions

Spot gold traded 0.2% higher at $4,133.32 an ounce as traders evaluated the Federal Reserve's future interest rate path amid escalating Middle East tensions.

The State Department ordered departures for non-emergency US government personnel in Saudi Arabia, while Brent oil remained above $109 a barrel following the security update.

Traders priced in an estimated 90% probability of a rate increase later in the year as persistent inflation well above the 2% target maintains pressure on monetary policy.