Gold extends gains as US inflation data, Middle East tensions drive demand

BAGHDAD, Iraq — Gold prices climbed on Wednesday as investors weighed global market uncertainty, energy supply concerns and the prospect of softer US inflation data that could shape Federal Reserve interest rate decisions. Spot gold futures reached $4,462.32 per ounce, up $21.22, or 0.48%, from the previous close. The metal has gained 3.65% over the past week, 8.48% over the past month and 31.29% over the past year. Traders cited persistent safe-haven demand amid uncertainty over US-Iran negotiations and tensions around the Strait of Hormuz, a critical chokepoint for global oil shipments. Markets are awaiting US inflation figures that will help define expectations for the Fed's next policy move. Data pointing to easing price pressures would strengthen the case for a rate cut, a scenario that typically supports non-yielding assets such as gold. Despite the recent rally, gold remains within its 52-week range, trading below the period high of $5,626.80 and above the low of $3,353.40 per ounce.