Gold Price Slumps to $4,310 Amid Fed Hopes and Geopolitical Tensions

The price of gold (XAU/USD) has fallen to around $4,310 on Wednesday, down 3.25% from last week's levels.

This decline comes as investors have become increasingly optimistic about a potential Federal Reserve rate hike in September, following US Fed Chairman Kevin Warsh's hawkish comments at the Jackson Hole central banker’s summit.

The escalation of hostilities between the US and Iran has also contributed to risk aversion, supporting the safe-haven value of the US Dollar.

A technical analysis shows that gold is under growing bearish pressure, with momentum indicators pointing to solid downside momentum. A break below the $4,300 support area could lead to a further decline towards the August 6 low around $4,225 and potentially even the late July lows in the $4,000 area.