Gold Prices Slide Amid Dollar Weakness and Fed Hike Fears
Gold prices slipped on Tuesday as the US dollar's weakness failed to offset concerns about an impending Federal Reserve rate hike. The precious metal shed 0.7% to $4,375.66 per ounce, while gold futures dipped 1.3% to $4,419.64 per ounce.
The decline comes despite a weaker dollar, which is typically bullish for gold. However, the market is bracing for potential rate hikes by the Fed in response to strong August jobs data and elevated inflation.
Market participants are now eyeing this week's US inflation reports, including the producer price index (PPI) and consumer price index (CPI), which could provide further clarity on the Fed's monetary policy outlook. Higher interest rates tend to weigh on non-yielding assets like gold.
The situation in the Middle East is also contributing to supply disruption concerns, with US-Iran tensions escalating over the weekend after reports of military strikes and retaliation.