Gold futures slipped below $4,000 an ounce on Wednesday as renewed US-Iran tensions lifted oil prices, fueling inflation concerns and reinforcing expectations that interest rates could remain higher for longer, weighing on the non-yielding metal. While geopolitical risks typically boost safe-haven demand, rising rate-hike expectations outweighed that support. The US launched fresh strikes on Iran and reinstated its naval blockade near the Strait of Hormuz, raising concerns over global energy supplies. Meanwhile, the US dollar index fell below 101 for a second straight session after softer-than-expected US inflation data showed annual inflation easing to 3.5% in June from 4.2% in May. Fed Chair Kevin Warsh reaffirmed the Fed's commitment to restoring price stability but refrained from signaling a more hawkish policy stance.

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