Gold slips as renewed Middle East tensions keep Fed hike bets alive

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsEconomyGold slips as renewed Middle East tensions keep Fed hike bets aliveBullion is still up around 10 per cent in August, heading for the biggest monthly gain since JanuaryAuthor of the article:Yihui Xie and Yvonne Yue LiLast updated 24 minutes ago The debasement trade is likely to continue into September as the Treasury starts bond buybacks and ahead of the Fed meeting, which will support gold. Photo by Chris Ratcliffe/BloombergGold edged down as renewed geopolitical risks stoked concerns about inflationary pressures that could make the Federal Reserve hike interest rates, a headwind for the precious metal.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBullion fell 0.5 per cent as escalating tensions in the Middle East sent United States crude above US$85 a barrel and Treasury yields higher. Elevated energy costs mean that the U.S. central bank may need to raise rates to contain price pressures. Higher rates are typically negative for non-yielding gold.The precious metal tumbled in the prior session as Fed Chairman Kevin Warsh’s hawkish speech where he vowed to fight inflation, with traders pricing in a more than 60 per cent chance of a hike at the central bank’s next meeting in September.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againBullion is still up around 10 per cent in August, heading for the biggest monthly gain since January, with prices surging after the U.S. Treasury’s surprise announcement mid-month to ramp up bond buybacks. The intervention to rein-in borrowing costs revived the so-called debasement trade, driven by concerns over rising sovereign debt and currency devaluation, a theme that helped fuel gold’s 65 per cent rally in 2025.The dovish Treasury and hawkish Federal Reserve are in a “tug of war,” Nicky Shiels, head of research and metals strategy at MKS PAMP SA, said in a note. The debasement trade is likely to continue into September as the Treasury starts bond buybacks and ahead of the Fed meeting, which will support gold, she added.The U.S. and Iran exchanged strikes for the first time in about a month as American forces hit an island in the Strait of Hormuz and the Islamic Republic responded by launching attacks on the United Arab Emirates and Jordan. U.S. President Donald Trump told Fox News on Monday morning that the U.S. would respond to Iran’s attacks on U.S. forces, without giving details.Spot gold was 0.5 per cent lower at US$4,434.78 an ounce at 1:12 p.m. in New York. Silver was down 0.1 per cent at US$66.30 an ounce. Platinum and palladium both fell. The Bloomberg Dollar Spot Index, a gauge of the U.S. currency, was down 0.2 per cent.—With assistance from Wendy Wells and William Clowes.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.