Brent above $100 and Fed rate hike odds near 78 percent drive real yields higher, pressuring gold despite Middle East tensions.
Gold prices slipped to $4,048 an ounce, retreating from this week’s highs near $4,150 as rising Treasury yields and Fed rate hike expectations overshadowed geopolitical risks. The metal tested support at $4,040, a level held since mid-July, even as Brent crude topped $100 amid Red Sea attacks on Saudi tankers.
Fed rate hike odds for September surged to 78 percent, reinforcing the dominance of rate dynamics over traditional safe-haven demand. Gold has underperformed during the Middle East conflict, failing to rally despite escalating tensions.
A break below $4,040 could push prices toward $4,000, while holding above keeps the metal rangebound ahead of next week’s Fed decision.