Gold slips amid Middle East flare‑up and steady‑rate outlook for Fed

Gold prices fell after a brief rise, trading around $4,120 an ounce, as tensions in the Middle East lifted inflation worries while the US Federal Reserve is still seen holding rates steady. Oil prices moved higher after the US State Department told non‑essential staff and their families to leave Saudi Arabia, and a drone strike on a Saudi Aramco facility killed two people. Treasury yields rose across the curve, with the two‑year note hitting its highest level in a week, adding pressure on gold which offers no interest income. Since the US‑Iran clash began in late February, gold has dropped roughly 20%, a slide that coincided with rising energy costs and higher inflation. Traders have little new guidance from Fed Chair Kevin Warsh’s recent comments, keeping expectations of a pause at the upcoming meeting intact. Recent data showed September housing starts fell and pending home sales hit a record low, suggesting a cooling US economy. The chance of a quarter‑point rate hike is now estimated at under one‑in‑six, though inflation stays well above the Fed’s 2% goal and soaring energy prices could force a policy shift. Spot gold slipped 0.4% to $4,123.39 in Singapore, while silver fell 0.7% to $57.54 and both platinum and palladium also dropped. The Bloomberg Dollar Spot Index was largely unchanged after a modest rise the day before.## Context