Gold Price Breaks Below 50-Day Support Amid US-Iran Conflict and Oil Rebound

The gold price broke below its 50-day support level as rising oil prices and stronger Treasury yields offset safe-haven demand tied to the US-Iran conflict.

Oil rebounded, lifting inflation pressure, with Brent crude trading near $104.71 a barrel and WTI at $93.53. The Strait of Hormuz risk premium is back in crude after US-Iran talks showed little sign of progress.

The Fed rate-hike expectations hardened, with rate futures implying roughly a 70% chance of another 25-basis-point increase in October. The dollar index held near a two-month high, and the 10-year Treasury yield traded near the 5.1% area.