The US dollar weakened, gold prices strengthened, but the door for a September rate hike remains open. The long-short battle looks to the Fed's stance.

CoinWorld News, gold prices rebounded to above $4,100 per ounce after Wednesday's sell-off. The rally was supported by a weaker U.S. dollar and renewed geopolitical tensions in the Middle East following mutual strikes between the U.S. and Iran on Wednesday. However, rising energy prices could complicate the inflation outlook, reinforcing market expectations that the Federal Reserve will maintain high interest rates for a longer period or implement further rate hikes. The minutes of the Fed's mid-June policy meeting highlighted a hawkish shift within the committee, putting pressure on precious metals. Thomas Ryan, an economist at Capital Economics, said: "The minutes reaffirmed that the door for a September rate hike is still very much open."