Spot gold rose approximately 1.3% on Wednesday to trade near $4,129 per ounce. Prices reached a two-week high as investors sought safe-haven assets amid escalating Middle East tensions. The U.S. military conducted strikes against Iranian targets, and President Trump warned of potential attacks on Iran's nuclear facilities.
Geopolitical instability disrupted Red Sea shipping, forcing oil tankers to alter course following threats from Iran-aligned forces. Brent crude surged over 3% in response to the conflict. These rising energy costs have stoked broader concerns regarding global inflation.
Market expectations for monetary policy have shifted significantly. A majority of economists now forecast a Federal Reserve interest rate hike in 2026. Investors are monitoring the upcoming Fed meeting for further guidance on the long-term rate outlook.