Gold Capped at $4330 Amid US-Iran Uncertainty and Surging Oil Prices

Gold prices have been volatile in recent weeks, swinging between $4235 and $4511 in September. The metal has come under selling pressure due to hawkish repricing of the Federal Reserve's monetary policy trajectory on high energy prices stoking inflationary pressures.

The Strait of Hormuz reopening hopes may support gold prices in the very short term, according to Praveen Singh of Mirae Asset Sharekhan. However, he sees upside capped at $4330 unless more clarity emerges on US-Iran talks.

Brent oil futures are trading at $105.54, up over 2 per cent for the day, after a UK ship was hit in the Strait of Hormuz and Iran threatened to spread the war to other geographical locations, including the Indian Ocean.