Gold Price Struggles as US-Iran Tensions Rise and Dollar Gains Strength

The gold price is struggling to break above $4,100 after failing to sustain gains for the fourth time this week. The metal faces headwinds due to rising US-Iran tensions and a stronger US Dollar. The US Central Command said it completed its 'heavy wave of strikes' against Iran in response to attempted missile attacks on US forces. This has led to a revival of haven demand, with investors seeking safety in the greenback.

Although oil prices have been little affected by the renewed hostilities in the Middle East, gold buyers are trading cautiously due to persistent inflation fears following a 6.50% rally in black gold yesterday. The Federal Reserve's decision to hold interest rates steady at 3.5-3.75% was widely expected, but the hawkish 9-3 vote in favor of this verdict has left markets uncertain about future rate hikes.

The US GDP report is due soon, and investors will be closely watching it for signs of economic growth. The Q2 GDP is expected to expand by 2.1% on an annualized basis, at the same pace seen in the previous quarter. Alongside this, gold traders will also pay attention to US jobless claims and the annual core PCE price index data.