Gold edges lower below $4,450 as Middle East tensions add inflation pressure
- Gold price drifts lower to around $4,445 in Tuesday’s early Asian session.
- Renewed Middle East tensions have fueled inflation concerns and bets the Fed could raise interest rates in September.
- Traders are pricing in nearly a 65.4% chance of a September hike after Fed’s Warsh vowed to fight inflation.
Gold price (XAU/USD) declines to near $4,445 during the early Asian trading hours on Tuesday. The precious metal loses momentum as ongoing tensions in the Middle East stoked concerns about inflationary pressures that could make the Federal Reserve hike interest rates.
US President Donald Trump on Monday threatened to forcefully strike Iran after Washington and Tehran exchanged fire for the first time in a month. Meanwhile, Iran's Revolutionary Guard Corps (IRGC) said it targeted US military bases in the two Middle Eastern countries in response to the first US strikes on Iran in weeks. The US military announced an attack Sunday on what it said were Iranian rocket launchers on Larak Island, in the Strait of Hormuz...
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