Gold Slips as Dollar, Yields Weigh
Gold prices traded around $4,290 an ounce on Tuesday, their lowest level since early August, pressured by a stronger US dollar and elevated Treasury yields. Rising crude oil prices have also fueled concerns over renewed inflationary pressures, as investors brace for an expected Federal Reserve interest rate hike this week. Oil prices remained elevated and well above $100 a barrel after attacks on Saudi Arabia’s energy infrastructure forced the East-West Pipeline offline, heightening concerns over global supply. Tensions involving the US, Iran and the Houthis around the Strait of Hormuz and Bab el-Mandeb added to geopolitical risks. Markets are pricing in a 25-basis-point rate hike by the Fed on Wednesday, with investors closely watching policymakers’ guidance for signs of further tightening. The Bank of Japan is also expected to raise interest rates on Friday, as elevated energy prices and persistent tensions in the Middle East continue to complicate the global inflation outlook.
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Gold prices traded around $4,290 an ounce on Tuesday, their lowest level since early August, pressured by a stronger US dollar and elevated Treasury yields. Rising crude oil prices have also fueled concerns over renewed inflationary pressures, as investors brace for an expected Federal Reserve interest rate hike this week. Oil prices remained elevated and well above $100 a barrel after attacks on Saudi Arabia’s energy infrastructure forced the East-West Pipeline offline, heightening concerns over global supply. Tensions involving the US, Iran and the Houthis around the Strait of Hormuz and Bab el-Mandeb added to geopolitical risks.
Markets are pricing in a 25-basis-point rate hike by the Fed on Wednesday, with investors closely watching policymakers’ guidance for signs of further tightening. The Bank of Japan is also expected to raise interest rates on Friday, as elevated energy prices and persistent tensions in the Middle East continue to complicate the global inflation outlook.