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Gold Retreats Amid Inflation Concerns and Rate Uncertainty

Gold prices declined for a third consecutive session as market participants reassessed the Federal Reserve's monetary policy stance. Recent U.S. economic data revealed elevated inflation readings that prompted investors to recalibrate interest-rate expectations. Geopolitical tensions have compounded inflationary concerns. The indefinite closure of the Strait of Hormuz created additional supply-chain risks that could sustain higher price levels. Federal Reserve officials have signaled caution against premature rate cuts. Policymakers emphasized the need to remain vigilant against inflation resurging. The conflicting pressures—elevated price growth offsetting potential growth concerns—have created uncertainty in precious metals markets. Gold, which typically benefits from lower interest rates, faced headwinds as traders priced in a longer period of restrictive monetary policy. Market participants expressed anxiety over the Fed's ability to manage competing economic priorities.