Gold Prices Tumble as Oil Soars Amid Inflation Fears
Gold prices slipped on Tuesday as Treasury yields and oil prices rose, putting downward pressure on the precious metal. Spot gold fell by 0.5% to $4,391.14 per ounce, while U.S. gold futures for December delivery dropped 0.6% to $4,446.70.
The increase in oil prices is a major concern for gold investors, as it raises inflationary fears and bolsters expectations of higher interest rates from the Federal Reserve. ANZ analyst Soni Kumari noted that oil prices will remain a key factor keeping gold under pressure due to the uncertain situation in the Middle East.
The market's pricing for a September quarter-point hike has flipped to a nearly 65% chance of a 'hold' after unexpected job losses and weaker consumer price inflation. Investors are awaiting the release of minutes from the Fed's July policy meeting, scheduled for Wednesday.