Gold slips 0.5% as oil, Treasury yields spur rate fears
Gold prices slipped by 0.5% mostly because tensions in the Middle East are pushing up oil prices and inflation fears.
Higher US crude oil (now over $85 a barrel) and rising Treasury yields have traders worried that the Federal Reserve might hike interest rates soon, a move that usually makes gold less attractive since it doesn't pay interest.
Kevin Warsh boosts September hike odds
Fed Chairman Kevin Warsh doubled down on fighting inflation, markets started betting there's a more than 60% chance of a rate hike in September.
Even with this pressure, gold actually jumped nearly 10% in August, its best month since January, thanks to earlier worries about currency value when the US Treasury announced more bond buybacks.
At 1:12pm in New York, gold was at $4,434.78 per ounce; silver, platinum, and palladium also edged lower.