Gold Slips as Oil Surges on Mideast Tensions, Fed Hawkishness

Gold (XAU/USD) retreated on Thursday, ending a four-day advance as the US Dollar strengthened. The decline came amid escalating conflict in the Middle East, which boosted oil prices and also reignited speculation that the Federal Reserve may continue hiking interest rates.

At the time of writing, XAU/USD was trading near $4,090, having fallen from a two-week high of $4,165. The interplay between safe-haven demand for crude and a firmer greenback is pressuring bullion, with higher rates further dimming the appeal of non-yielding assets.

Market participants are now weighing the dual impact of geopolitical risk and tightening monetary policy, leaving gold vulnerable to further downside in the short term.