Commodities
Gold Prices Slide as Oil Fears Fuel Fed Rate Hike Bets
Gold prices have taken a hit, falling 1.5% to $4,223.95 per ounce as of 0117 GMT, while U.S. gold futures dropped by the same margin to $4,257.90.
The decline comes amidst rising oil prices and heightened inflation concerns, which are increasing expectations of further Federal Reserve tightening. This, in turn, has weakened demand for non-yielding assets like gold.
According to Tim Waterer, chief market analyst at KCM Trade, the combination of high bond yields and elevated oil prices is continuing to hurt gold, as uncertainty around oil flows keeps inflation a central concern for investors.