Gold Slips as Warsh Remarks Boost Rate Hike Bets Amid Higher Oil Prices

Gold prices slipped by 0.40% on Monday to $4,432 as Federal Reserve (Fed) Chair Kevin Warsh's hawkish remarks sparked speculation of a possible rate hike at the September meeting.

The US and Iran exchanged strikes, pushing energy prices higher, with West Texas Intermediate (WTI), the US crude Oil benchmark, rising 2.50% to $85.62.

Higher energy prices increase the chances of higher interest rates, which is a headwind for gold as it fares positively in lower-yield environments.

The US 10-year Treasury yield rose two and a half basis points to 4.706%, while the Greenback retreated some 0.25% according to the US Dollar Index (DXY), which tracks the performance of the buck against six currencies.