Gold prices fell amid escalating tensions between the U.S. and Iran and rising oil prices
Global gold prices fell to their lowest level in 11 weeks amid a new round of tit-for-tat actions between the U.S. and Iran, which simultaneously pushed up oil prices and heightened expectations of tighter monetary policy from major central banks.
According to market data, spot gold lost 1.3% and fell to $4,206.08 per ounce, dropping to its lowest level since March 23.
U.S. gold futures for August delivery also fell by 1.4% to $4,228.
Meanwhile, oil rose by about 1% following the escalation of tensions in the Middle East, which heightened concerns about a potential acceleration of global inflation.
Analysts note that while gold is traditionally considered a safe-haven asset against inflation, interest rate hikes by central banks reduce the precious metal’s appeal, as it does not generate interest income.
Traders currently estimate the probability that the U.S. Federal Reserve will raise rates by December at more than 70%, according to the CME FedWatch indicator.
New U.S. inflation data, expected this week, will be an additional factor influencing the markets. It could play a key role in shaping the Fed’s future monetary policy decisions.
This is reported by Reuters.
Global oil prices rose on June 10, partially offsetting losses from the previous trading session, when prices fell to their lowest level in seven weeks. The main factors driving the price increase were new U.S. military strikes on Iran and a significant reduction in U.S. oil inventories.
Global oil prices surged during Monday’s trading due to the resumption of hostilities in the Middle East.
Prior to this, oil prices had fallen amid a ceasefire between Lebanon and Israel — Reuters.
