Gold rebounded to $5,115 per ounce after a 4% drop, buoyed by Middle East tensions and a strengthening dollar. Traders navigated conflicting signals: safe-haven demand amid Israel’s strikes on Tehran and Trump’s deployment of naval escorts for oil tankers through the Strait of Hormuz. The dollar index edged higher as markets priced in energy price volatility.

The US-Israeli war on Iran deepened Tuesday with air strikes on Qom, where Iranian officials met to elect a successor to Ayatollah Khamenei. Bond yields climbed as energy prices spiked, fueling inflation concerns. Platinum and palladium joined gold’s rally, reflecting broader risk aversion.

Trump’s oil tanker insurance and naval support aim to avert supply disruptions, but geopolitical risks persist. Gold’s rebound underscores investors’ preference for tangible assets amid uncertainty. Silver and industrial metals also rose, signaling cautious optimism.