Gold Falls After US-Iran Tensions Lift Oil Prices
Gold prices declined below $4,050 per ounce on Wednesday after oil prices surged and inflation concerns grew when US President Donald Trump said an interim agreement to end the Iran conflict had collapsed. Iran targeted US military sites in Bahrain and Kuwait after US strikes, pushing crude oil prices more than 5% higher and increasing expectations of persistent inflation pressures. "Gold initially fell as renewed oil-price strength clouded the inflation and rate outlook," wrote Saxo Bank analysts in a Wednesday note, adding that "however, despite 10-year real yields trading near an 18-month high and adding to the headwinds facing non-yielding assets, bullion has so far found support around USD 4,100. Investors awaited minutes from the Federal Reserve's June meeting for policy signals as markets raised the probability of a September rate hike to 67%. At the time of writing, XAU/USD was trading at $4,061, down 1.09%.
Gold prices declined below $4,050 per ounce on Wednesday after oil prices surged and inflation concerns grew when US President Donald Trump said an interim agreement to end the Iran conflict had collapsed.
Iran targeted US military sites in Bahrain and Kuwait after US strikes, pushing crude oil prices more than 5% higher and increasing expectations of persistent inflation pressures. "Gold initially fell as renewed oil-price strength clouded the inflation and rate outlook," wrote Saxo Bank analysts in a Wednesday note, adding that "however, despite 10-year real yields trading near an 18-month high and adding to the headwinds facing non-yielding assets, bullion has so far found support around USD 4,100.
Investors awaited minutes from the Federal Reserve's June meeting for policy signals as markets raised the probability of a September rate hike to 67%.
At the time of writing, XAU/USD was trading at $4,061, down 1.09%.