Gold holds above $4,000 as Fed hike bets and firm dollar cap gains

Gold prices held above $4,000 on Friday after dipping to a three-month low, as expectations for a Federal Reserve interest rate hike in December and a firmer US dollar limited gains. Traders priced in an 80% chance of a December rate increase despite Fed officials signaling no urgency, while oil-driven inflation concerns from Middle East conflict supported tightening prospects. Escalating Saudi-Houthi fighting and potential US-Iran military plans added geopolitical risk. The Fed's two-day meeting concludes Wednesday, with rates expected unchanged, followed by US GDP and inflation data Thursday. Technical indicators showed bearish momentum, with resistance near $4,065-$4,070 and support at the $4,000 psychological level.