Gold fell nearly 2% to around $5,200 per ounce on Tuesday, weighed down by a stronger US dollar and growing inflation concerns, which dampened demand for safe-haven assets despite escalating geopolitical tensions. The dollar gained as investors sought safety amid surging energy prices driven by the conflict in the Middle East. Higher fuel costs have intensified inflation fears, pushed bond yields upward, and led markets to reassess the Federal Reserve’s policy outlook. Expectations for the next Fed rate cut have been pushed back from July to September, although markets are still pricing in two 25-basis-point reductions overall. At the same time, the US military is expected to ramp up operations against Iran, potentially targeting missile production facilities, drones, and naval assets. Adding to the tensions, a senior Iranian official warned that ships attempting to pass through the Strait of Hormuz could be targeted, effectively threatening to halt tanker traffic amid rising security risks.