Gold held around $4,350 an ounce on Wednesday after falling for two consecutive sessions as rising oil prices intensified inflation concerns and boosted expectations for higher interest rates. Oil continued to advance after US forces destroyed five Iranian crude tankers near Kharg Island, Iran’s main oil export hub, in retaliation for attempted missile attacks on a US warship. Investors are awaiting key US inflation readings this week for indications of the Federal Reserve’s next policy decision, with markets pricing in roughly a 60% chance of a 25-basis-point rate hike next week. While gold is commonly used as an inflation hedge, higher interest rates can weaken demand for the non-yielding asset by making interest-bearing investments more attractive. Gold nevertheless recorded strong gains in August, supported by investment and hedging demand and continued central-bank purchases, particularly from China.