Gold Holds Drop as US Strikes in Iran Cloud Rate-Hike Outlook

Gold prices declined as renewed US airstrikes on Iran endangered an interim deal to end the conflict. These escalating US-Iran tensions are expected to drive oil prices higher, potentially fueling inflation. Consequently, this situation has increased the prospects for future interest-rate hikes by the Federal Reserve, as the market reacts to the geopolitical instability and its potential impact on the broader economic outlook and monetary policy decisions regarding inflation management.