Gold falls below $4,550 as expectations for further Federal Reserve rate hikes increase.

• Gold prices trade slightly lower near $4,535 during Monday’s early Asian session.
• US President Donald Trump stated that his patience with Iran was wearing thin.
• Meanwhile, the upside potential for the precious metal appears capped as expectations for further Fed rate hikes continue to strengthen.

Gold prices (XAU/USD) slipped to around $4,535 during Monday’s early Asian session, remaining under pressure as rising inflation concerns tied to the Middle East conflict strengthened expectations for higher US interest rates.

US President Donald Trump on Sunday warned Iran to “get moving” or risk facing further consequences. His visit to China ended without any major trade breakthroughs or meaningful progress toward ending the conflict.

According to Edward Meir, an analyst at Marex, China offered little assistance in easing tensions, while rising crude oil prices continued to support the inflation outlook, weighing heavily on precious metals.

Meanwhile, CNBC reported that the US is urging Iran to abandon its nuclear ambitions and reopen the Strait of Hormuz. At the same time, Iran’s Mehr news agency stated that Washington had provided “no tangible concessions” and was instead seeking gains it failed to secure during the conflict, increasing the likelihood of stalled negotiations.

Market participants have now largely ruled out Federal Reserve rate cuts this year, while expectations for additional tightening have increased, according to CME’s FedWatch Tool. Since Gold does not provide interest income, higher interest rate expectations tend to reduce the metal’s appeal despite ongoing geopolitical uncertainty.