Commodities
Gold Prices Plummet Amid Rising Mideast Tensions and Hawkish Fed Outlook
Gold prices fell on Tuesday as investors reacted to rising tensions in the Middle East and awaited key US labour market data. Spot gold was down 0.4% at $4,428.54 an ounce by 0432 GMT.
The decline comes ahead of the release of US job openings, the ADP employment report, and nonfarm payrolls data due this week. These figures will provide clues about labour market conditions and influence expectations for Federal Reserve monetary policy.
Fed Chairman Kevin Warsh's recent speech at Jackson Hole, where he hinted that the Fed would have more work to do if policymakers lacked confidence in inflation reaching 2%, also weighed on gold prices. Higher interest rates typically weigh on gold by increasing the appeal of yield-bearing assets.