Gold prices remained in a tight range on Wednesday as the market balanced safe-haven demand from escalating US-Iran tensions against inflation fears sparked by higher oil prices and anticipation of the Federal Reserve’s latest policy minutes. Spot gold traded near $4,074.10 per ounce, down 0.75% on the session, after swinging between gains and losses earlier in the day. The metal had briefly risen 0.5% to $4,125.59 before retreating.
Crude oil extended gains after attacks on three commercial vessels near the Strait of Hormuz and subsequent US military strikes on Iranian targets. President Trump announced the Iran oil-sales waiver was revoked, adding to market uncertainty. WTI crude rose to $74.93 per barrel, and Brent crude climbed to $78.73 per barrel. Higher oil stoked inflation expectations, which dampened gold’s traditional appeal as a safe haven, as rising inflation typically pressures the Federal Reserve to keep rates elevated.
Market participants are now closely watching the release of the FOMC minutes for clues on how policymakers view the inflation outlook. A dovish tone could push gold toward resistance at $4,162–$4,214, while a hawkish surprise may send prices to the $4,041 support level. Spot silver also fell 2.57% to $58.30 per ounce.
Technically, gold remained above the psychologically important $4,000 mark but below the resistance zone that capped the previous rebound. Immediate support sits at $4,072.40, and a break below $4,041.65 could expose declines to $3,942.10.
