Gold slipped below $4,100 an ounce on Monday, extending its decline as renewed missile exchanges between the US and Iran pushed oil prices higher and reinforced expectations of further interest-rate hikes to tame inflation. The US launched its fourth strike in a week against Iran on Sunday, in response to an Iranian attack on a Cyprus-flagged container ship. In turn, Tehran announced that the Strait of Hormuz would be closed “until further notice,” a claim later dismissed by US Central Command.
Investors are also awaiting key US inflation data due this week for additional signals on the Federal Reserve’s policy trajectory. Futures markets currently price in one more Fed rate hike before year-end. Meanwhile, Fed Chair Kevin Warsh is set to make his first appearance before the US Congress on Tuesday.
