Gold prices are moving higher in the pre-market session, recovering from a sharp sell-off on the previous day. The initial negative reaction was driven by fears that surging oil prices, caused by escalating US-Iran tensions in the Strait of Hormuz, would lead to inflation and prompt Federal Reserve rate hikes. However, a pause in the US dollar's rally and investor positioning ahead of today's crucial US CPI data and testimony from the Fed Chair are now providing support for the precious metal, leading to a rebound.