Gold prices slip below $4,450 an ounce as Middle East uncertainties weigh on investor sentiment. Concerns over U.S.-Iran peace talks and renewed hostilities have pressured the non-yielding metal this week. The weakness reflects broader risk-off tone in markets amid fears of sustained supply disruptions.

Oil prices climb on worries about Strait of Hormuz disruptions, which could pressure interest rates higher and keep inflation elevated. Energy analysts at Saxo Bank warn that inventory drawdowns in the region may deliver fuel price shocks, supporting the case for higher-for-longer rates that pressure gold. The inflation backdrop makes holding gold less attractive versus yield-bearing assets.

New York gold futures are down 0.3% at $4,492.70 an ounce, on track for a weekly loss. The combination of geopolitical tension and rate concerns has kept safe-haven demand muted, with investors favoring energy exposure instead. Gold's inability to hold above $4,500 signals continued downside pressure until Middle East risks resolve or Fed rhetoric shifts.