Gold Prices Slide Amid Middle East Oil Disruptions and Inflation Fears

Global gold prices have fallen due to disruptions in oil shipments from the Middle East and concerns about inflation. The price of gold has dropped over one percent, reaching a nearly five-week low, with prices trading near $4,300 per ounce.

The disruptions in oil shipments have raised fears of higher energy prices, which could fuel inflation and lead to a US Federal Reserve interest rate hike. Market sentiment currently indicates a 92% probability that the Fed will raise rates during this week's meeting.

Interest rate hikes are typically negative for gold as it does not yield regular interest or dividends. In a high-interest-rate environment, investors tend to favor assets that generate returns.