US-Iran Tensions Weigh on Gold as Rate Hike Bets Soar

Gold prices have stabilized after a two-day decline of more than 3.5%, but the market remains under pressure due to escalating tensions between the United States and Iran.

The conflict has heightened concerns about further increases in energy prices and inflation, which could intensify if oil continues to rise as it did after its biggest increase in three weeks.

The U.S. Federal Reserve is also weighing on gold prices, with traders increasing bets on a rate hike due to the high probability of more than 60% at the September 15-16 meeting.