Gold Prices Steady Amid Ongoing Inflation Concerns and Fed Rate Hike Expectations

Gold prices steadied on Friday after plummeting nearly 2% the previous day amid surging oil prices and new US tariffs.

The sharp decline in gold was fueled by expectations that the Federal Reserve (Fed) may need to raise interest rates due to a worsening inflation outlook.

However, a pullback in oil prices weighed modestly on the US Dollar and pushed US Treasury yields slightly lower, lending some support to gold.

The Fed's hawkish narrative remains dominant, with markets now seeing an 78% chance of a rate hike in September, according to the CME FedWatch Tool.