Gold Drifts Lower Amid Iran War Concerns

(RTTNews) - Gold prices fell toward $4,000 an ounce on Wednesday as investors weighed geopolitical tensions and reacted to mixed economic data from China.

Spot gold dipped 0.6 percent to $4,028.40 an ounce as oil prices extended gains for a third consecutive session amid escalating Middle East tensions. U.S. gold futures were down 0.9 percent at $4,034.75.

The U.S. dollar struggled for direction after falling from a two-week high as softer U.S. inflation data helped traders to scale back their expectations for Federal Reserve interest rate hikes.

Brent crude futures climbed toward $86 a barrel after U.S. forces resumed the naval blockade against vessels transiting to and from Iranian ports and coastal areas, and President Donald Trump threatened to hit energy targets in Iran.

U.S. forces will intensify their campaign in the coming days, targeting power plants and bridges if Iran refuses to sign a deal with Washington, Trump was quoted as saying by Fox News as both sides escalated a standoff over control of the Strait of Hormuz.

"I'll save the energy targets for last, but ultimately their energy targets will be hit. We're going to knock out all their power plants. We're gonna knock out their bridges unless they get to the table and negotiate," Trump said in a Tuesday night interview with Fox News.

"There are currently more than 20 U.S. Navy warships and hundreds of military aircraft operating across the Middle East. American forces remain vigilant, lethal, and ready," the U.S. Central Command said in a post on X.

Iran's IRGC warned of targeting oil routes for U.S. allies after launching a pre-dawn strike on the U.S. AI-Azraq Air Base in Jordan.

Missile alert warnings went out in Bahrain and Kuwait early today as they faced incoming Iranian fire.

In a blow to the Trump administration, U.S. Senate Democrats have blocked the $1.15 trillion National Defense Authorization Act in a vote that split along party lines.

Elsewhere, China's GDP growth came in at 4.3 percent in Q2, the weakest pace since late 2022 and missing market projections.

However, separate industrial output and retail sales released alongside GDP figures showed some signs of improvement in consumer activity in June.