Gold prices slipped to around $4,000 an ounce Tuesday as fresh attacks between the US and Iran in the Persian Gulf rattled markets. The precious metal's decline came despite escalating Middle East tensions, catching investors off guard given gold's traditional safe-haven status during geopolitical crises.

The exchange of attacks threatens a delicate ceasefire that had helped stabilize energy markets. Just last week, oil prices retreated to pre-conflict levels, offering relief to inflation-wary investors. Now, renewed hostilities could reverse that progress and reignite concerns about supply disruptions.

Market expectations for Federal Reserve interest-rate cuts have already shifted. The recent de-escalation had tempered expectations for tighter monetary policy, but fresh violence complicates the outlook. Traders are reassessing how central banks might respond to renewed inflationary pressure from energy shocks.

Gold's unexpected drop reflects investor uncertainty about whether the conflict will remain contained or escalate further. With $4,000 per ounce representing a key psychological level, the metal's reaction signals markets are weighing multiple factors beyond traditional safe-haven demand.