FX.co ★ Gold Extends Gains

Gold climbed to around $5,210 per ounce on Wednesday, extending gains from the previous session as the escalating conflict in the Middle East kept markets on edge. The Pentagon said Tuesday that the US and Israel had launched their most intense strikes yet on Iran and would continue until the Islamic Republic is defeated, adopting a more aggressive stance after earlier comments from President Donald Trump had suggested the conflict might soon ease. US officials also sent mixed signals, heightening uncertainty, with the White House stating that the US had not escorted an oil tanker through the Strait of Hormuz—contradicting a now-deleted social media post by Energy Secretary Chris Wright. At the same time, investors are closely watching upcoming US inflation data, which is projected to remain well above the Federal Reserve’s target even before accounting for the impact of the war. Markets have now scaled back expectations for monetary easing, with traders pricing in just one interest rate cut by the Fed this year.