Gold Prices Surge Above $4,400 Amid Fed Hike Uncertainty

Gold prices continued their bullish run, surpassing $4,400 in Asia on Tuesday. This marks the third consecutive day of gains for the precious metal. The momentum is largely driven by fading expectations for a US Federal Reserve interest rate hike in September.

The odds of an interest rate hike now stand at a coin-toss level, according to CME Group's FedWatch Tool. This uncertainty has weighed heavily on the US Dollar, supporting gold prices. Additionally, optimism over the reopening of the Strait of Hormuz and easing oil prices have contributed to the uptrend.

However, the recent surge in oil prices has reignited inflationary fears, particularly after negotiations between the United States and Iran over a peace deal hit an impasse. The renewed pessimism around the Mideast conflict has fueled risk aversion across Asia, sending oil prices higher.