Gold Hits $4,400 as Rate Hike Expectations Plummet Amid US-Iran Tensions

Gold prices have been on the rise, nearing $4,400 per ounce as expectations for Federal Reserve rate hikes decline. This development comes despite ongoing tensions between the United States and Iran.

The US Census Bureau reported a 0.6% month-over-month decline in retail sales in July, lower than expected. This data contributes to evidence that inflationary pressure is easing, weighing on the U.S. dollar and underpinning the price of gold.

According to the CME FedWatch tool, money markets have priced in a 33.1% chance of a September Fed rate hike, down from approximately 47% a month earlier. The U.S. dollar index has also declined by 0.2%, supporting dollar-denominated gold prices.