The escalating conflict between the US and Iran and expectations of interest rate hikes have pushed gold prices down to $3,995 per ounce.

According to Golden Ten Data, as conflicts between the US and Iran escalated over the weekend, the market is betting that the Federal Reserve may need to raise interest rates to curb inflation, leading to a drop in gold prices. After falling more than 2% last week, the gold price is currently trading near $3,995 per ounce.

Hostilities in the Middle East have intensified, including an attack on a key oil facility in Kuwait, causing oil prices to surge. Tehran stated that the ceasefire agreement between the US and Iran is effectively nullified, further fueling concerns about potentially more severe disruptions to key energy supplies.