Gold Prices Steady Near $4,400 Amid Middle East Tensions

Gold prices steadied near $4,400 an ounce as traders weighed the impact of Middle East tensions and the US dollar's decline against the yen. The precious metal was little changed in early trading after falling 1.5% over the last two sessions.

The renewed clashes between the US and Iran in the Strait of Hormuz have raised oil prices and heightened inflationary concerns, with traders pricing in a roughly 60% likelihood that the Federal Reserve will hike interest rates next week.

Tighter monetary policy is typically a headwind for non-yielding gold. However, the dollar's decline to its lowest against the yen since February supports gold as it generally moves in an inverse pattern to the US currency.