Gold Prices Slip Amid Middle East Uncertainty and Inflation Concerns

Gold prices slipped on Monday as market uncertainty over the Middle East war and rising inflation concerns weighed on investor sentiment. Spot gold fell 0.1% to $4,037.01 per ounce by 12:37 p.m. EDT (1637 GMT), while U.S gold futures for August delivery dropped 0.3% to $4,035.80.

The Fed's policy path is being closely watched as three officials who dissented at last week's meeting in favor of a rate hike said that delaying higher borrowing costs could keep inflation above the Fed's 2% target. New York Fed President John Williams warned that the central bank was ready to raise rates if inflation pressures did not ease.

The Middle East conflict has already had an impact on energy prices, with Brent futures jumping more than 20% last month after fighting between the U.S. and Iran resumed. Higher energy prices reinforce expectations that the Fed will keep interest rates higher for longer to combat inflation, weighing on non-yielding gold.