Gold traded below $4,100 an ounce on Thursday after falling for a second consecutive session, pressured by concerns that the renewed conflict in the Middle East could disrupt energy supplies from the region and intensify inflationary pressures.
The US military confirmed it carried out strikes on Iran for a second straight day in an effort to curb Tehran’s ability to threaten navigation through the Strait of Hormuz, while Iran vowed a large-scale retaliatory operation against US military bases in the region.
President Donald Trump said that, in his view, the ceasefire is over and warned of additional strikes on Iran along with a new blockade.
Meanwhile, minutes from the Federal Reserve’s June meeting showed that only a few policymakers favored a rate increase, though officials expressed growing concern about inflation.
Markets continue to price in at least one Fed rate hike by the end of 2026.