Gold Price Drops Amid Fresh US-Iran Tensions

Gold prices declined Thursday morning after failing to sustain above $4,100 for the fourth time this week. The recent upswing in gold was hindered by fresh US-Iran tensions.

The US launched strikes on Iran Wednesday, hitting the southwestern city of Abadan and Qeshm Island. Oil prices were little affected by the renewed hostilities, but gold buyers traded with caution as inflation fears persist.

On Wednesday, the Federal Reserve held interest rates steady at 3.5% to 3.75%, as widely expected. However, a hawkish 9-3 vote in favor of this decision raised uncertainty about future rate hikes and long-term inflation expectations.