The dollar index (DXY) briefly jumped nearly 20 points to 101.10.

Iran's Khatam al-Anbiya Central Headquarters said on Wednesday the armed forces would deliver a "devastating response" to U.S. forces. The statement accused the U.S. of strikes on parts of southern Iran, calling them "blatant aggression," and warned Tehran will not allow U.S. interference in management of the Strait of Hormuz. It said the only safe passage for merchant vessels and tankers through the waterway is routes designated by Iran. The U.S. carried out new strikes on Iran on Tuesday and, after three tankers in the Strait of Hormuz were struck by projectiles, revoked permits allowing Iran to export oil, further pressuring an already fragile ceasefire.

DBS Group multi-asset strategist Sherilyn Chew said Hong Kong's pilot gold-clearing infrastructure and the PBOC's continued accumulation of gold amid de-dollarization talks both underscore Asia's sustained interest and official-sector demand, and should deepen regional market access over time, supporting a firmer medium-term demand floor for gold.