Gold prices experienced a decline of 1.1%, reaching $4,569.30 per ounce as traders assessed the ongoing standoff between the United States and Iran. President Donald Trump has committed to maintaining a naval blockade on Iran, which has raised concerns over oil supply and inflation risks. This situation has diminished expectations for rate cuts from central banks globally, leading to a nearly 14% drop in gold prices since the conflict began in late February. Analysts from Citigroup Inc. noted that selling pressure on gold could persist due to Middle East uncertainties. Despite the current downturn, many analysts remain bullish on gold's medium-term prospects, supported by data from the World Gold Council indicating that central banks increased their gold holdings at the fastest rate in over a year. Continued retail demand from China also helps stabilize prices, with a potential de-escalation in the Middle East and a dip in interest rate expectations possibly reigniting gold's appeal.