Gold Slides Amid Elevated Energy Prices and Escalating US-Iran Tensions

The US consumer price index (CPI) for July was released on Wednesday, showing a slight cooling from June's inflation rate of 3.5% to 3.4%. This development has investors looking towards the Federal Reserve's next move on interest rates, with a roughly 56% chance that the Fed will keep rates steady in September and 44% anticipating a quarter-point hike.

However, the inflation implications remain central for markets, particularly as higher energy prices could encourage the Fed to maintain elevated rates. This has put pressure on gold, which is facing significant selling above $4,494.66.

Meanwhile, tensions between the US and Iran continue to escalate, with a top adviser to the Iranian Revolutionary Guard Corps stating that Iran could prolong the war until President Donald Trump leaves office.