Gold price rebounds slightly from five-week low as inflation concerns and a stronger dollar limit gains

1. On Tuesday, spot gold rose by 0.3% to $4,538.68 per ounce, rebounding from a five-week low reached in the previous trading session, but gains were limited. The US and Iran continued to engage in the Strait of Hormuz, oil prices remained high, intensifying inflation concerns. Rising US Treasury yields and a stronger US dollar suppressed gold prices.2. On Monday, the US military destroyed six Iranian boats and intercepted missiles and drones in an attempt to open up strait shipping routes. The stronger dollar makes dollar-denominated gold more expensive for holders of other currencies.3. Traders have basically ruled out the possibility of a US rate cut this year. The market now puts the probability of a rate hike by March 2027 at 37% (compared to 27% for a rate cut a week ago). Investors are awaiting key data this week including US job openings, the ADP employment report, and non-farm payrolls reports.