Gold Extends Losses as Middle East Tensions Lift Rate Concerns
Gold prices dropped near $4,000 per ounce during the American session on Monday after renewed Middle East conflict lifted oil prices and strengthened expectations that US interest rates could stay elevated. Weekend missile and drone exchanges between the United States and Iran, alongside the Strait of Hormuz closure, pushed crude prices higher and increased worries about broader inflation pressures. "Renewed US and Iranian strikes have lifted oil prices and revived inflation concerns, pushing bond yields and the dollar higher while weighing on non-yielding and growth-sensitive metals," wrote Ole Hansen, head of commodity strategy at Saxo Bank, in a Monday note. CME FedWatch Tool data showed traders assign a 69% chance of a September Federal Reserve rate increase. Investors now await Fed Chair Kevin Warsh's first congressional testimony on Tuesday, alongside June consumer inflation, producer inflation, retail sales, and weekly jobless claims for fresh policy signals. At the time of writing, XAU/USD was trading at 4,003, down 2.84%.
Gold prices dropped near $4,000 per ounce during the American session on Monday after renewed Middle East conflict lifted oil prices and strengthened expectations that US interest rates could stay elevated.
Weekend missile and drone exchanges between the United States and Iran, alongside the Strait of Hormuz closure, pushed crude prices higher and increased worries about broader inflation pressures. "Renewed US and Iranian strikes have lifted oil prices and revived inflation concerns, pushing bond yields and the dollar higher while weighing on non-yielding and growth-sensitive metals," wrote Ole Hansen, head of commodity strategy at Saxo Bank, in a Monday note.
CME FedWatch Tool data showed traders assign a 69% chance of a September Federal Reserve rate increase.
Investors now await Fed Chair Kevin Warsh's first congressional testimony on Tuesday, alongside June consumer inflation, producer inflation, retail sales, and weekly jobless claims for fresh policy signals.
At the time of writing, XAU/USD was trading at 4,003, down 2.84%.