Gold climbed above $4,000 an ounce on Tuesday, supported by a weaker US dollar and renewed safe-haven demand after President Donald Trump announced plans to reinstate a blockade on Iranian vessels transiting the Strait of Hormuz. The announcement heightened geopolitical tensions and pushed oil prices higher, raising concerns over renewed inflationary pressures. The dollar index slipped below the 101 mark after a sharp rise in the previous session, further supporting bullion prices. Investors are also awaiting key US inflation data and Federal Reserve Chair Kevin Warsh's testimony before Congress later today for fresh clues on the interest rate outlook. Reflecting the strength in global markets, MCX August gold futures gained 0.5% to ₹1,40,734 per 10 grams. Gold has remained highly volatile in 2026, fluctuating between record highs above $5,500 and levels near $4,000 amid changing geopolitical developments, Fed policy expectations, and movements in the US dollar.

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