Gold Prices Slip Below $4,100 Amid US‑Iran Tensions and Fed Rate Outlook

Spot gold fell about 1 % to around $4,103 per ounce, while silver dropped more than 1 % to near $60 per ounce. The decline is linked to renewed U.S.–Iran tension in the Strait of Hormuz, a sharp rise in oil prices and heightened inflation worries that have pushed market expectations for a September Federal Reserve rate hike to about 70 %.

TD Securities’ global commodities strategist Bart Melek said the geopolitical flare‑up is the main driver of the sell‑off, noting that investors are reducing gold and silver positions despite the safe‑haven label. Higher real yields and a strong U.S. dollar are also weighing on the metal.

India’s major cities reported spot gold around ₹1.43 lakh per 10 g, showing only modest local movement while the global trend remains downward. Central banks continue to add to reserves, but short‑term pressure on gold persists amid mixed signals from U.S. inflation data and upcoming Fed testimony.