Gold is down by 2.02%

Gold climbed above $4,600 an ounce on Wednesday, advancing for a second straight session as signs of de-escalation in the Middle East pushed oil prices lower, helping to alleviate inflation concerns. Defense Secretary Hegseth said the ceasefire established nearly a month ago remains intact, while Secretary of State Rubio confirmed that offensive operations have ended as Washington pivots toward safeguarding shipping routes in the Strait of Hormuz. President Trump also announced a temporary pause in a US-led effort to assist stranded vessels in exiting the strait, allowing time to gauge whether a deal with Iran to end the conflict can be reached, although the blockade on ships traveling to and from Iranian ports will stay in place. Gold has faced significant selling pressure since the onset of the war, as soaring energy costs fueled inflation fears and reinforced expectations that central banks may keep interest rates elevated for longer or potentially tighten further.

Gold prices climbed to $4,570 per ounce on Tuesday after hitting a more than one-month low on Monday, as investors tracked escalating Middle East tensions and their potential to fuel inflation and reshape interest rate expectations. A fragile truce in the region faced new pressure after US-Iran clashes in the Gulf, with both sides vying for control of the Strait of Hormuz, effectively closed since the war began. US Defense Secretary Pete Hegseth warned on Tuesday that President Donald Trump could resume "major combat operations" against Iran if necessary. Soaring energy costs threaten to push inflation higher and delay central bank rate cuts. While gold is a traditional inflation hedge, its appeal dims in high-rate environments, as non-yielding assets lose their shine. Meanwhile, the IMF chief cautioned that a prolonged conflict into 2027, with oil at $125 per barrel, could trigger a "much worse" global economic outcome.

Gold traded around $4,550 an ounce on Tuesday after dropping nearly 2% in the previous session, pressured by intensifying tensions in the Middle East that have driven energy prices higher and amplified inflation concerns. US forces repelled Iranian attacks while escorting two US-flagged vessels through the Strait of Hormuz, while the UAE reported intercepting cruise missiles launched by Iran and attributed a major fire at its Fujairah port to an Iranian drone strike. These developments followed President Trump’s plan to restore shipping through Hormuz and support stranded vessels, although shipowners remain cautious amid elevated security risks. The latest escalation has cast doubt on the viability of the four-week ceasefire, with oil prices and global bond yields surging on expectations that central banks may need to raise interest rates to contain inflation. Gold is currently down nearly 15% since the war started in late February.