Gold: XAU Near 7-Month Low on Rate Hike Expectations.

Gold held at $4,020 an ounce on Tuesday, near its weakest level since November 2025, as a firm dollar and expectations of US interest rate hikes kept pressure on the metal. Bullion was down 11% for the month, heading for a fourth consecutive monthly decline, and down around 14% this quarter, the first quarterly loss since 2024 and the steepest drop since Q2 2013. Rising energy prices, driven by the Middle East conflict, have erased expectations of Federal Reserve rate cuts this year, with traders now pricing in a near 65% chance of a September hike. Although gold is traditionally seen as an inflation hedge, higher interest rates tend to weigh on the non-yielding asset. Attention now shifts to upcoming US employment data, including nonfarm payrolls, and remarks by Fed Chair Kevin Warsh due Wednesday for clues on monetary policy. Meanwhile, investors continued to monitor the prospects for renewed US-Iran diplomacy, though Iran dismissed reports of talks in Doha this week as unfounded.