Commodities
Gold Prices Slump Amid Renewed Iran Tensions and Hawkish Fed Sentiment
Gold prices continued to slide on Monday, testing an eight-day low near $4,400. The metal's decline comes as investors remain cautious ahead of this week's US Nonfarm Payrolls (NFP) data and amid renewed tensions between the US and Iran.
The recent spike in Oil prices and inflation fears have supported the case for a Federal Reserve interest rate hike next month, keeping the US Dollar (USD) strong and limiting the upside momentum for Gold.
On Friday, Fed Chair Kevin Warsh signaled that rate hikes may be needed to contain inflation, prompting markets to ramp up bets for a September rate lift-off. The increased hawkish sentiment has kept the USD's further downside in check and undermined non-yielding assets like Gold.