Commodities
Gold Prices Slip Amid Middle East Tensions and Rising Hike Odds
Gold prices slipped on Monday as rising Middle East tensions lifted oil and Treasury yields, fueling inflation worries and increasing the likelihood of a Federal Reserve rate hike in September.
The precious metal dropped 0.5% to $4,434.78 per ounce at 1:12 p.m. in New York, while US crude surpassed $85 per barrel.
Market participants now assign a probability above 60% to a September hike following Fed Chair Kevin Warsh's commitment to curb inflation.
Nicky Shiels, head of research and metals strategy at MKS PAMP SA, anticipates the debasement trade will buoy gold through September, despite Monday's pullback.