Gold drops more than 1% as rising Middle East tensions add to rate-hike fears

Spot gold fell 1.4% to $4,064.02 per ounce as Middle East tensions pushed oil prices higher, raising inflation concerns and expectations of a US Fed rate hike. Traders see a 69% chance of a Fed rate increase in September, with Fed Chair Kevin Warsh's congressional testimony awaited. Silver dropped 2.3% to $58.47, platinum fell 0.2% to $1,624.82, and palladium slipped 0.5% to $1,270.69.