Gold Price Forecast: XAU/USD dips below $4,400 as Middle East tensions grow

LONDON (September 8) Gold (XAU/USD) posts marginal gains for the third straight day on Tuesday amid risk-off sentiment as tensions in the Middle East escalate and Oil prices rally, strengthening the case for higher interest rates in the world's major economies. Against this background, the XAU/USD pair explores prices below $4,400 during the European trading hours, extending its decline from last week’s highs in the $4,500 area.

Risk appetite faded on Tuesday as Tehran escalated its threats, warning that it might attack energy infrastructure in Gulf countries, including US Oil and Gas sites, in case of new attacks on its assets. 

With hopes of a negotiated end to the war vanishing, Oil prices continue rising. Brent Crude stretched to levels above $97.00 per barrel, nearing the feared $100 psychological level, boosting inflationary pressures and prompting central banks to adopt more restrictive policies. 

FXStreet