Gold Slumps Amid Rising Oil Prices and Hawkish Fed Remarks

Gold prices have been struggling to gain traction as renewed Middle East tensions drive up oil prices and the US Federal Reserve's hawkish stance lifts the dollar.

The metal briefly dipped below $4,250 before recovering to around $4,275, but technical signals indicate bearish momentum on the daily chart.

Higher oil prices, following the escalation of Middle East tensions, have pushed Brent crude above $82 a barrel and are boosting rate-hike expectations in the US.

The implied probability of an October interest rate hike has risen to over 70%, supporting a firmer dollar and keeping gold under near-term pressure.