Gold Holds Gain as Dip-Buying Counters Inflation Fears From War

Gold held gains around $4,120 an ounce as dip-buying offset inflation fears stemming from Middle East hostilities that pushed oil to multiweek highs. US and Iran signalled no return to negotiations after escalating attacks, with strikes reported on Red Sea tankers claimed by Yemen's Iran-backed Houthis. Traders weighed higher energy prices against soft US data for clues on the Fed's interest rate path, with gold still down about a fifth from its record high near $5,600 hit earlier.