Gold Tumbles Below $4,450 Amid Escalating Middle East Tensions
Gold prices dipped below $4,450 on Tuesday as tensions in the Middle East escalated and concerns about inflationary pressures rose. The US President Donald Trump threatened to forcefully strike Iran after Washington and Tehran exchanged fire for the first time in a month.
The move comes amid hawkish comments from Federal Reserve Chair Kevin Warsh at the central bank's annual Jackson Hole symposium, where he reiterated the Fed's commitment to its inflation target and indicated policymakers were not yet confident price pressures were easing sufficiently.
As a result of Warsh's speech, traders are now pricing in more than 65.4% odds of a rate hike at the Fed's September meeting, up from around 39.9% before the speech, according to the CME FedWatch tool.