Gold held steady near $4,100 an ounce on Thursday after the US military said it had completed its latest strikes on Iran, raising hopes that peace talks could resume and easing some fears over inflationary pressures. Earlier, Washington had launched new attacks on Iranian targets after President Trump accused Tehran of stalling negotiations on an interim peace deal, while Iran reportedly retaliated by targeting US vessels in the Strait of Hormuz.
Despite the brief stabilization, gold prices hovered near seven-month lows as the protracted conflict and the near-total closure of the Strait of Hormuz continued to disrupt energy shipments from the Persian Gulf, stoking concerns about higher inflation and further interest rate increases. In the latest economic data, US inflation quickened in May to its fastest pace in more than three years, driven by sharply rising energy costs, though the result was in line with market forecasts.
In response, traders slightly pared back expectations for additional Federal Reserve rate hikes this year, although markets still fully price in a quarter-point increase in December.
