Gold traded around $4,430 an ounce on Monday, near a two-week low, as renewed Middle East tensions fueled inflation concerns while hawkish comments from Federal Reserve Chair Kevin Warsh strengthened expectations for a September rate hike. Bullion fell more than 3% on Friday, its biggest one-day drop since June 10, after Warsh warned the Fed would “have work to do” without clearer evidence that inflation is returning to its 2% target. Markets now price in just over a 60% chance of a September hike, up from about 36% before his remarks, according to the CME FedWatch Tool. Oil prices also jumped after the US said it attacked an Iranian island in the Strait of Hormuz, prompting a response from Tehran. Despite the pullback, gold remains up around 10% this month, its strongest monthly gain since January, after the US Treasury announced plans to double liquidity-support buybacks of longer-dated bonds, stoking concerns over currency debasement.