Commodities
Gold Falls Amid Middle East Tensions and Hawkish Fed Bets
Gold prices declined on Tuesday as investors digested military developments in the Middle East and awaited US labor market data scheduled for release later this week.
The US dollar index remained steady at 99.50 points, offering little support to gold prices.
Tony Sycamore, a market analyst at IG, attributed gold's pressure to Federal Reserve Chairman Kevin Warsh's hawkish tone in his speech at the Jackson Hole symposium and renewed tensions in the Strait of Hormuz, which have pushed oil prices higher and revived inflation concerns.
According to data from the CME FedWatch Tool, traders are pricing in a 66% probability of a rate hike at the Fed's September meeting, rising to 89% for a hike in December.