Gold Slides Below $4,400 as Middle East Tensions Fuel Oil Gains

Gold prices fell below $4,400 in US hours on Tuesday despite a soft dollar due to rising Middle East tensions and bets of a Federal Reserve interest rate hike.

Middle East tensions escalated after Iran-backed Houthis struck energy facilities in four southern Saudi cities, with oil extending its gains. WTI crude traded near $91.30 per barrel, up from the highest since June 8 at $92.48.

The Fed has left interest rates unchanged this year but flagged inflation above its 2% target, and markets now look to the September 15-16 meeting where there's a 60% chance of a 25-basis-point hike.