Gold retreats towards $4,400 as hawkish policy expectations intensify

Gold slipped towards $4,400 an ounce in electronic trades on Tuesday, extending losses from the previous session as expectations of further interest-rate hikes by major central banks weighed on bullion. Elevated oil prices amid renewed US-Iran tensions continued to reinforce inflation concerns, keeping monetary-policy expectations in focus. Investors now await key US inflation data due this week for further clues ahead of the Federal Reserve?s policy meeting next week, while the ECB is also expected to tighten policy. Meanwhile, the softer dollar, with the dollar index easing towards 98.7, offered some support to gold, limiting the downside. MCX October gold futures traded largely flat near ₹1,52,790 per 10 grams.

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