Gold Prices Steady Above $4,300 Amid Hawkish Fed Bets and Strong USD

Gold prices have steadied above $4,300 as investors weigh the impact of potential US Federal Reserve rate hikes and a strong US Dollar on the precious metal.

The Fed's hawkish stance has been fueled by comments from Chairman Kevin Warsh at the Jackson Hole Symposium, while the escalating Middle East conflict has lifted crude oil prices to a fresh high since July 24, stoking inflation fears.

This has led to concerns that major central banks may adopt a more hawkish policy outlook, driving flows away from non-yielding assets like gold and supporting the case for a depreciating move in the near term.

However, traders are waiting for the release of the US monthly employment details on Friday, which could provide cues about the Fed's future policy outlook and influence USD price dynamics.