Gold slipped below $4,550 an ounce on Tuesday, trimming gains from the previous session as heightened tensions in the Middle East kept investors wary of inflation risks. The US military reportedly struck missile launch sites and vessels suspected of attempting to deploy naval mines in southern Iran, with US Central Command stating that the operations were intended to protect American forces in the region.
At the same time, President Donald Trump said that talks with Tehran were progressing well, but cautioned that further strikes could follow if negotiations collapsed. Gold prices remain nearly 15% lower since the conflict began, as concerns over an energy-driven inflation shock have strengthened expectations that central banks may keep monetary policy tighter for an extended period. However, the sharp drop in oil prices over the past week has eased some worries about inflationary pressures and the likelihood of additional interest rate hikes.
