Gold Prices Retreat Amid Rising Oil Costs and Strengthening US Dollar

Gold prices have retreated from their intraday highs as the US Dollar recovers some of its losses and oil prices rise. The precious metal reached an intraday high near $4,443 but is now trading around $4,400.

The latest hostilities in the Middle East, including Iran-backed Houthis attacking energy facilities in Saudi Arabia, have intensified tensions. This has led to a modest rebound in the US Dollar and rising oil prices, weighing on gold.

Despite its safe-haven status, gold's near-term outlook remains challenging due to Fed rate-hike expectations. The Federal Reserve has not raised interest rates this year but policymakers have expressed concern about inflation staying above 2% for too long.