Dollar Strength Triggers Gold Declines Amid Rising Rate Hike Expectations

The US dollar's strength has led to further declines in gold prices, while silver remains resilient. The precious metal is struggling near the $4,400 support level as expectations for a September rate hike increase sharply.

Renewed US-Iran tensions and risks around the Strait of Hormuz are also supporting the dollar's safe-haven demand, adding pressure on gold despite its own geopolitical appeal.

The S&P 500 index remains bearish, with a cautiously bullish short-term bias as long as it stays above 7,688. However, failure to break resistance around 7,720 could keep the index range-bound.