WTI crude closed at $86.72, up 2.3% and its highest level since August 24, while gold fell nearly 1% Monday even as the U.S. and Iran traded strikes near the Strait of Hormuz. In every prior escalation this year the two assets moved together; this time they diverged after Fed Chair Kevin Warsh's Friday remarks pushed September rate-hike odds toward 60% from roughly 35% a week earlier. Higher expected rates raise the cost of holding gold, and that calculus is now outweighing a live military escalation in how the metal trades.
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