Gold Price Tumbles Amid US-Iran Tensions and Fed Rate Hike Expectations
The gold price is facing pressure from renewed US-Iran tensions and expectations of a Federal Reserve interest rate hike in September.
Air strikes on Iranian launchers have reignited inflation fears, supporting the case for a Fed rate hike next month.
Fed Chair Kevin Warsh explicitly signaled that rate hikes may be needed to contain inflation, prompting markets to ramp up bets for a September rate lift-off.
The gold price has extended its correction from over three-month highs of $4,697, testing the lowest level in eight days near $4,400.