Gold Tumbles Below $4,500 as Fed Rate Hike Fears Mount

Gold prices have been under pressure below $4,500 as expectations of Federal Reserve rate hikes rise. This has led to renewed concerns about inflation and a potential shift in investor sentiment.

The short-term outlook for gold is cautious, with the metal trading near $4,370 after a sharp reversal from its August high near $4,697. The long-term outlook remains bullish, but only if buyers can defend key support levels.

Renewed tensions between the US and Iran have supported safe-haven demand for gold, but higher energy prices have also increased inflation fears and expectations of Fed rate hikes. The $4,300 support level will determine the next short-term move in gold.