Gold Dips Below $4,400 Amid Geopolitical Tensions and Fed Watch

Gold prices declined below $4,400 during the European trading session today, reaching $4,432, reflecting short-term market sentiment influenced by geopolitical developments and expectations for Federal Reserve policy shifts. The escalation of attacks by Yemen’s Houthis on Saudi Aramco’s oil facilities has intensified regional tensions, contributing to a broader rise in oil prices, which surged over 1.5% to exceed $99 per barrel. Higher crude prices could exacerbate inflationary pressures, potentially increasing the likelihood of a 25-basis-point rate hike by the Federal Reserve at its upcoming September meeting, according to the CME FedWatch Tool, which currently prices in a 60% chance of such a move on September 15–16.