Gold Prices Slide as Geopolitics and Fed Hike Bets Weigh In

Gold prices dipped to start the week, hovering near $4,350 after failing to reach the $4,400 mark on Friday. The metal's recovery from a six-week low last Wednesday has stalled.

The geopolitical tensions in the Middle East and their potential impact on inflation continue to weigh on gold prices. Yemen's Houthi forces attacked Saudi Arabia with missiles and drones over the weekend, while Iran ruled out reopening the Strait of Hormuz or returning to negotiations with the US until certain conditions are met.

The US Federal Reserve's (Fed) hawkish outlook has also boosted the safe-haven US Dollar, putting pressure on gold. However, the recent pullback in US bond yields from multi-year highs may limit further losses for gold.