Gold Slips on Fed Rate Outlook and Geopolitical Tensions

Gold prices slipped in Asian trading, losing some of its recent gains after rebounding from a low of $4,100. This area has been a key support level since August 5.

The US Dollar remains supported by the high probability of another Federal Reserve rate increase by year-end, with futures pricing showing more than a 90% chance. Despite softer yields and weaker consumer confidence data, the Greenback continues to benefit from interest rate expectations.

Geopolitical tensions in the Middle East are also contributing to the safe-haven demand for the US Dollar, with uncertainty surrounding the US-Iran standoff keeping investors cautious.