Gold Slips to $4,365 Amid Escalating Middle East Tensions and Hawkish Fed Comments
The price of gold dipped to around $4,365 in Monday's early Asian session as tensions escalated in the Middle East and Federal Reserve officials hinted at further interest rate hikes.
The US is reportedly planning to resume military action against Iran, prompting warnings from Tehran. The Fed's Kansas City President Jeffrey Schmid stated that he supported the recent rate hike, citing inflation trending above 3%.
Schmid emphasized that price pressures are 'hot' across various goods and services, reflecting a supply-demand imbalance despite a solid economy and labor market. This hawkish stance is expected to put downward pressure on gold prices in the near term.