FX.co ★ Gold Slips on Stronger Dollar and Delayed Fed Cut Bets

Gold reversed earlier gains to trade slightly lower near $5,115 per ounce on Thursday, as a stronger US dollar and diminished expectations for Federal Reserve interest rate cuts outweighed safe-haven demand stemming from escalating tensions in the Middle East. The conflict intensified after Israel launched a large wave of strikes on Tehran, targeting infrastructure reportedly linked to Iranian authorities, in retaliation for earlier Iranian missile attacks that had forced millions of Israelis into bomb shelters. Iranian officials also rejected reports that their intelligence ministry had approached Washington for negotiations, calling such claims false. At the same time, fears of energy supply disruptions continued to push oil prices higher and stoke inflation concerns, leading traders to further delay their forecasts for monetary easing. Markets now expect the Fed’s first rate cut in September, with two cuts still priced in for 2026.