Gold prices extended their slide toward $4,150 per ounce on Wednesday, touching their lowest levels since late November 2025, as US inflation data came in largely in line with expectations and the conflict involving Iran intensified. Headline inflation accelerated to 4.2% in May, the highest reading since April 2023, driven by surging energy prices linked to the Iran conflict, while core inflation rose to a seven‑month peak of 2.9%. Traders slightly pared back their expectations for additional Federal Reserve rate hikes this year, although a quarter‑point increase in December remains fully priced in following last week’s stronger‑than‑expected US employment report. At the same time, tensions in the Middle East worsened as the US and Iran carried out new strikes, with President Donald Trump warning that Iran would “have to pay the price” for stalling negotiations, weakening an already fragile ceasefire and further dimming hopes for a broader peace agreement.