Gold Prices Crash Below $4,300 Amid Fed Rate Hike Odds and Oil Price Surge

Gold prices have fallen below $4,300 as higher oil prices, stronger Treasury yields, and a more aggressive Federal Reserve dominate safe-haven demand. The metal's price has slipped to around $4,296-$4,302, with the immediate technical focus on the $4,268-$4,231 demand zone.

The current setup for gold is bearish, with the market paying less attention to geopolitical risk premiums and more attention to inflation risks. This is surprising given that the U.S.-Iran conflict has increased oil supply concerns and pushed Brent crude towards $95.91.

The primary driver of the day may be the U.S.-Iran escalation, which is increasing oil prices and pushing inflation higher. The market is now paying more attention to the inflation risks with higher oil prices, rather than the geopolitical risk premium.