Gold prices edged lower on Wednesday, as they continue to face downward pressure due to their consolidation below the simple moving average (9) on the four-hour chart. The yellow metal is currently trading near the first support level of $4,281; if it breaks below this level, the decline could extend toward the second support level of $4,236. On the upside, if the price rises above the aforesaid indicator, it may test resistance levels near $4,419 then $4,465.

Gold fell to its lowest in more than three weeks ‌on Wednesday as the escalating Middle East conflict lifted oil prices, stoking inflation and rate-hike fears, while investors focused on upcoming U.S. jobs data.

Market Watch

US launches new strikes on Iran and Tehran hits back

The U.S. launched a barrage of airstrikes against ​Iran on Tuesday, prompting Iranian retaliation, in the most serious escalation in weeks in a conflict that has driven up global energy prices and weighed on President Donald Trump’s popularity ‌at home.

The strikes followed a weekend exchange of fire — the first since July — and attacks on Monday on two tankers leaving the Strait of Hormuz, the global oil supply waterway that Iran has effectively closed to shipping. Global oil prices rose more than $4 a barrel on Tuesday, settling at a five-week high.

Dollar steadies near two-week high

The ​dollar held near a two-week high on Wednesday as renewed hostilities in the Middle East drove oil prices higher, reviving inflation concerns and adding upward ‌pressure on bond yields.

The dollar is also on track to extend its gains for the second consecutive session, having risen 0.1% on Wednesday.

Oil rises amid renewed clashes between U.S. & Iran

Oil prices rose in early trade on Wednesday, extending the previous ​session’s surge, as concerns over supply disruption intensified after the U.S. and Iran exchanged strikes overnight, dimming ‌hopes for a quick easing of tensions in the Middle East.

Meanwhile, ​in the U.S., the world’s largest oil producer, crude inventories fell by 2.6 ​million barrels in the week ended August 28, while distillate stocks, which include diesel and heating oil, declined by 265,000 barrels, market sources said, ​citing data from the American Petroleum Institute.

Looking Ahead

Markets are awaiting U.S. ADP Non-Farm Employment Change at 13:15 GMT, which could influence gold price.