Gold Capped at $4,330 Amid US-Iran Uncertainty
The global economy is experiencing heightened tensions due to the US-Iran conflict, which has led to a surge in oil prices. Spot gold has been affected by this uncertainty, swinging between $4235 and $4511 in September with a bearish bias.
According to Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, the yellow metal has come under strong selling pressure due to hawkish repricing of the Federal Reserve's monetary policy trajectory on high energy prices that stoke inflationary pressures. The 30-year US yields surged to 5.44 per cent, the highest since 2004.
The US-Iran conflict has also led to a rise in oil prices, with Brent crude futures trading at $105.54, up over 2 per cent for the day. A decisive breach of $110 resistance could take the counter materially higher.