Gold Falls Amid Renewed Tensions and Rate Hike Bets

Gold prices slipped on Monday as renewed Middle East tensions and hawkish comments from Federal Reserve Chair boosted expectations for a September rate hike. Spot gold fell 0.1% to $4,448.19 per ounce by 10:30 GMT.

The metal had touched its lowest level since August 19 earlier in the day. US gold futures for December delivery dropped 0.7% to $4,498.90.

Gold remained under pressure following Kevin Warsh's hawkish address on Friday, while renewed US-Iran tensions added to inflation concerns and increased expectations of a Fed rate hike before the end of the year, according to ActivTrades senior analyst Ricardo Evangelista.

'A return above $4,600 would probably require a weak US labour report and an easing of tensions in the Persian Gulf, allowing Treasury yields and the US dollar to soften,' Evangelista said.