During the Asian trading session on Thursday, June 11, the price of gold experienced extreme volatility following the United States' completion of a new round of strikes against Iran. The U.S. military action has heightened instability in global markets and contributed to rising inflation.

In the choppy trading, the gold price at one point rose by 1.1%, reversing an earlier decline of a similar magnitude that had seen prices approach $4,000 per ounce.

In the early Asian session, the spot gold price touched a low of $4,023.75 per ounce before staging a significant rebound to reach a high of $4,118.19 per ounce.

Following accusations by former U.S. President Donald Trump that Iran was delaying negotiations for an interim peace agreement, the U.S. military announced it had completed strikes on Iranian targets.

U.S. Central Command issued a statement saying that, on the instructions of the President, it had completed "defensive strikes" against multiple targets within Iran on June 10.

The statement indicated the strikes targeted Iran's military reconnaissance capabilities, communication systems, and air defense positions. U.S. Marine Corps, Air Force, and Navy combat units launched precision-guided munitions against the Iranian objectives. According to the statement, these targets "posed a threat to U.S. forces and international merchant shipping in regional waters."

In an interview with Fox News on Wednesday evening, Eastern Time, Trump stated he had spoken "directly" with Iranian officials and claimed "the Iranians asked me to stop the bombing," adding that "the bombing attacks will stop very soon."

The U.S. military stated on Wednesday that it had launched a new round of airstrikes against multiple targets in Iran. This came hours after the former President vowed to launch fresh strikes if a peace agreement could not be reached.

In the aftermath of the U.S. strikes, Iran announced the closure of the Strait of Hormuz, contributing to a more than $2 increase in oil prices on Thursday.

Iran's Khatam al-Anbiya Central Headquarters of the Armed Forces announced early Thursday that, due to the turbulent regional situation, the Strait of Hormuz was closed to all vessels, including tankers and merchant ships, effective immediately, and that any violator attempting passage would become a target.

The rise in crude oil prices could accelerate inflation. Although gold is seen as a hedge against inflation, rising interest rates typically exert pressure on the non-yielding metal.

Data showed that U.S. consumer inflation rose at its fastest pace in three years in May, driven by soaring energy product prices due to Middle East conflicts, providing further justification for the Federal Reserve to maintain interest rates at current levels.

Markets are awaiting the release of U.S. Producer Price Index (PPI) data for May later on Thursday to further assess the Federal Reserve's monetary policy stance.

The U.S. headline PPI for May is forecast to have risen 6.4% year-over-year, up from 6% in the previous month. The core PPI is expected to have increased 5.4% year-over-year, up from 5.2% in April.

Paul Wong, a market strategist at Sprott Asset Management, said: "Despite the recent consolidation in gold prices, support remains from inflation, central bank buying, and concerns over currency devaluation."