Iran Tensions and Inflation Fears Keep Dollar Strong

The US Dollar remains strong due to elevated energy prices and Fed hike bets after Iran's Supreme Leader dismissed Trump's claims about reopening the Strait of Hormuz.

Oil prices have recovered some of their previous day's losses, and crude oil is still recovering from its slump. This has kept inflation risks high, prompting traders to assign a 60% probability that the US Federal Reserve will raise borrowing costs in September.

The Nonfarm Payrolls (NFP) report due on Friday will provide crucial data for traders looking to gauge the Fed's policy path and influence the near-term USD price dynamics. For now, Gold trades below its $4,100 mark due to the safe-haven US Dollar's strength.