Gold Suffers Three-Week Low Amid Escalating Mideast Tensions
Gold prices hit a three-week low on Wednesday due to rising Middle East tensions and inflation concerns. The escalating conflict between the US and Iran led to a surge in oil prices, which stoked fears of higher interest rates.
According to Bloomberg's Brendon Thorne, gold fell 0.6% to $4,304.01 per ounce, its lowest since August 7. This marks the fourth straight session of losses for gold and keeps it below the 200-day moving average, a closely watched technical level.
U.S. gold futures for December delivery dropped by 1% to $4,350.80, while the US dollar remained firm, making greenback-priced metals more expensive for buyers using other currencies.
Bas Kooijman, CEO and asset manager of DHF Capital S.A., said that a rebound in oil prices after renewed US-Iran tensions added to inflation concerns, which could continue to tighten monetary policy expectations and drive yields higher, limiting any rebound potential for gold.