Gold Falls on Inflation Concerns as Fed Rate Hike Looms

Gold prices fell on Wednesday as concerns over inflation and rate hikes weighed on investors. Spot gold was down 0.1% at $4,349.44 per ounce, while U.S. gold futures for December delivery were down 1% at $4,393.30.

The Middle East conflict intensified, with Iranian-backed Houthis launching strikes on several Saudi cities and the US hitting multiple Iranian oil tankers. Rising crude prices tend to put upward pressure on inflation, as higher energy costs filter through the broader economy.

Brent crude prices jumped for a fourth straight session, further fueling inflation concerns. The CME FedWatch Tool indicates that a majority of traders expect the Federal Reserve to raise interest rates at its upcoming policy meeting.