Gold futures extended losses for a third consecutive session on Tuesday, declining as fresh US military strikes against Iran raised concerns about prolonged conflict in the region. The precious metal, typically viewed as a safe-haven asset, struggled to maintain its traditional role as investors processed the latest escalation.

The strikes threaten to extend an already volatile situation that has disrupted global markets for weeks. Rising tensions between the two nations have created uncertainty across energy and commodity markets, with traders positioning for potential supply chain disruptions. Safe-haven demand initially supported gold prices, but the continuous selling pressure suggests a shift in investor sentiment.

Inflation fears have intensified as the conflict threatens to disrupt oil shipments through the Strait of Hormuz, a critical chokepoint for global energy supplies. Higher energy costs typically boost inflation expectations, which could influence Federal Reserve policy decisions. However, financial markets remain focused on the immediate military developments rather than long-term economic impacts.

The precious metal's decline despite geopolitical uncertainty signals that investors may be prioritizing immediate risk management over traditional hedging strategies. Market participants will likely monitor both diplomatic channels and military developments for clues on whether this conflict de-escalates or intensifies further.