Gold Extends Losses for Fourth Consecutive Session
Gold prices fell toward $4,100 per ounce on Wednesday, marking a fourth straight session of declines as elevated oil prices intensified inflation concerns and strengthened expectations for interest rate hikes. Oil resumed its upward trend after a diplomat dismissed reports that a deal to end the US-Iran conflict was imminent, although negotiations remain underway. Rising tensions in the Middle East and Eastern Europe, along with increased attacks on tankers in the Strait of Hormuz, further heightened concerns over supply disruptions. Meanwhile, the US Federal Reserve is widely expected to leave interest rates unchanged next week, though markets anticipate a possible rate hike in December. The Bank of Japan is also expected to maintain its policy rate next week before raising it in December. Although gold is traditionally considered a hedge against inflation, higher interest rates tend to weaken its appeal compared with interest-bearing assets.
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Gold prices fell toward $4,100 per ounce on Wednesday, marking a fourth straight session of declines as elevated oil prices intensified inflation concerns and strengthened expectations for interest rate hikes. Oil resumed its upward trend after a diplomat dismissed reports that a deal to end the US-Iran conflict was imminent, although negotiations remain underway. Rising tensions in the Middle East and Eastern Europe, along with increased attacks on tankers in the Strait of Hormuz, further heightened concerns over supply disruptions.
Meanwhile, the US Federal Reserve is widely expected to leave interest rates unchanged next week, though markets anticipate a possible rate hike in December. The Bank of Japan is also expected to maintain its policy rate next week before raising it in December. Although gold is traditionally considered a hedge against inflation, higher interest rates tend to weaken its appeal compared with interest-bearing assets.