Rate Hike Fears Crush Gold Markets as Oil Prices Soar

The Federal Reserve's potential rate hike has left investors uncertain about the future of gold markets. According to analysts, there is a 13.6% chance that interest rates will remain stable until December. However, rising oil prices due to increasing tensions in the Middle East are expected to fuel inflation and make it difficult for the Fed to keep rates unchanged.

Rising oil prices have pushed WTI above $92.00 and Brent towards $97.00. This has led some analysts to believe that higher interest rates will be inevitable, making gold less attractive as it does not pay interest. The US dollar's weakness against a broad basket of currencies is also contributing to the uncertainty.

Gold failed to break above the resistance level at $4480-$4500 and retreated towards $4400. If gold falls below this level, it could move towards the support at $4300-$4320, with a possible test of the 50 MA at $4247 if it drops further.