Gold prices maintained their upward momentum after U.S. President Donald Trump signaled that recent strikes on Iran would likely be short-lived, easing market worries about a prolonged conflict that could fuel inflation. The metal traded near $4,385 per ounce, rebounding 1% to end a three‑day decline. Oil’s sharp rally lost steam following Trump’s remarks, reducing fears of an open‑ended war that would pressure non‑yielding assets like gold. Market participants are watching the geopolitical tension closely as investors weigh the impact of potential supply disruptions against the Federal Reserve’s inflation outlook.

The development marks a shift from earlier concerns that escalating Middle East hostilities would reignite inflation, potentially hurting gold’s appeal as an inflation hedge. Analysts note that while the immediate risk appears contained, any further escalation could quickly revive price volatility. Traders are also monitoring the Federal Reserve’s upcoming policy decisions, which will be crucial in determining gold’s near‑term trajectory amid mixed economic signals.

Overall, the market’s reaction underscores the delicate balance between geopolitical events and commodity pricing, with gold’s modest gains reflecting a temporary relief from war‑related inflation fears.