• Gold rises on increased safe-haven demand as the conflict in the Middle East deepens. 
• Israel steps up bombing of Beirut and is poised to launch a retaliatory attack on Iran after a bomb explodes near Netanyahu’s house.  
• XAU/USD continues trending higher as it pushes deeper into territory above $2,700. 

Gold (XAU/USD) is already up half a percent to trade in the $2,730s on Monday during the European session after rising over 1.0% on Friday. The precious metal is gaining on a mixture of increased safe-haven demand due to the intensifying conflict in the Middle East and moves by the People’s Bank of China (PBoC) to further ease credit conditions by cutting interest rates. 

The PBoC’s move to lower its one-year and five-year prime loan borrowing rates not only has the effect of increasing Gold’s attractiveness as a non-interest-paying asset, but also suggests the potential of more demand for Gold from Chinese investors and private buyers, who already make up the largest market for the commodity in the world.