Gold Prices Slip as Fed Rate Hikes Loom Amid Iran Tensions

Gold prices are set to end the week lower due to rising energy costs and expectations of further interest rate hikes from the Federal Reserve. The metal has traded in a narrow range around $4,300 an ounce this month as traders reassess their outlook for Fed policy.

The recent Iran impasse has contributed to inflation concerns, driving up bond yields and fueling bets on higher borrowing costs. This is negative for gold, which pays no interest.

US consumer sentiment fell in September to a four-month low, with the University of Michigan's final sentiment index decreasing to 48.1 from a month earlier. Despite near-term headwinds, many investors still believe gold will grind higher as it regains its traditional value as a portfolio hedge.