During Thursday (Sep 3) ASIan trading hours, spot gold posted a sharp short‑term jump and is now trading near $4414 per ounce, marking a $26 intraday gain.

(Spot Gold 15‑Minute Chart. Source: 24K99)

Bloomberg analysis says gold maintains upward momentum because US President Donald Trump appears to rule out prolonged US military operations in the Middle East, eASIng inflation fears triggered by another spike in energy prices.

(Screenshot Source: Bloomberg)

Gold rebounded more than 1% in the prior session, halting three consecutive days of losses.

Following the largest US‑Iran hostilities since July, US President Trump told reporters in the White House Oval Office on Wednesday that the latest US operations against Iran would not last “very long”.

Trump also stated that Iran had attempted to deploy a mine‑launching rocket, which was destroyed by US forces. Iranian efforts to rebuild radar and missile systems were also targeted by US strikes.

Crude oil rally cooled after Trump commented that the latest round of strikes against Iran may be short‑lived.

The renewed conflict had stoked market worries over a protracted war. A drawn‑out conflict would push inflation higher and exert pressure on non‑yield‑bearing gold.

The US Dollar edged lower on Wednesday. Sharp yen gains kept traders alert to potential official intervention from Japanese authorities to support the currency.

A weaker US Dollar generally improves gold’s appeal for investors holding other currencies.

John Williams, President of the New York Fed, noted signs of continued inflation moderation as tariff‑driven effects fade, while higher energy costs have not spilled over into other service sectors.

His remarks dampened market expectations for a Fed rate hike. Latest data showing slower US corporate job creation in August reinforced this view.

Fed Chair Kevin Warsh delivered hawkish comments last Friday, lifting market odds of a rate increase at the policy meeting in two weeks as investors see the need to curb inflation.