Gold Price Dips to $4,400 Amid US-Iran Tensions

The gold price has edged lower to around $4,400 during the early Asian session on Thursday, pressured by escalating geopolitical tensions between the United States and Iran.

However, the potential downside for the precious metal might be limited as a tame reading of US inflation eased pressure on the US Federal Reserve to raise interest rates as soon as next month.

The renewed tensions in the Middle East and the continued closure of the Strait of Hormuz weigh on the yellow metal as it raises oil-driven inflation fears, according to Seema Shah, chief global strategist at Principal Asset Management.