Gold Struggles Amid Fed Rate Hike Bets and Rising Oil Prices

Gold prices struggled to rise above $4,400 on Wednesday as investors remained cautious amid bets of a Federal Reserve rate hike and rising oil prices. The US military's destruction of five Iranian crude oil carriers in response to an attempted attack by the Islamic Revolutionary Guard Corps (IRGC) pushed oil prices higher, with West Texas Intermediate (WTI) trading around $93.00 per barrel.

The escalating tensions between the US and Iran have led to concerns that higher energy costs will keep inflation elevated and force major central banks to raise interest rates. Higher borrowing costs tend to weigh on gold by increasing the appeal of interest-bearing assets, which in turn keeps gold prices under pressure.

Markets are now looking ahead to this week's US inflation data, with the Producer Price Index (PPI) due on Thursday and the Consumer Price Index (CPI) scheduled for Friday. The figures could bolster the case for a Fed rate hike at its September 15-16 meeting.