Gold Prices Slide Amid Higher Oil, Yields and Fed Rate Hike Expectations
Gold prices continued to slide on Thursday after a sharp selloff in the previous session. The metal is facing pressure from higher oil prices, a firmer dollar, and rising Treasury yields. This comes as investors assess the prospect of further Federal Reserve rate hikes.
The spot price of gold fell 0.2% to $4,281.13 an ounce, while gold futures slipped 0.1% to $4,315.55. Meanwhile, oil prices rose after Iranian President Masoud Pezeshkian told the United Nations that Iran would not allow freedom of navigation through the Strait of Hormuz while sanctions and a U.S. blockade remain in place.
The comments underscored the difficulty of reaching a peace agreement with Washington despite renewed diplomatic efforts this week. Gold has fallen roughly 20% since the U.S.-Iran war began in late February, with energy prices and the Fed outlook remaining major drivers.