Gold futures fell toward $4,800 per ounce on Wednesday as a persistent hawkish hold from the Federal Reserve and elevated Treasury yields countered the safe haven appeal of intensifying Middle Eastern instability. The FOMC maintained the federal funds rate at the 3.5%–3.75% target range for a second consecutive meeting while signaling that only one rate reduction remains likely for 2026. While bullion initially found support from reports of airstrikes on Iran’s South Pars gas field and the killing of intelligence minister Esmaeil Khatib, the central bank’s focus on inflation risks has bolstered the dollar to increase the opportunity cost of holding non yielding assets. Policymakers noted that while job gains have remained low and the labor market shows signs of softening, the uncertain economic implications of the effective closure of the Strait of Hormuz necessitate a restrictive monetary stance.