Forex
Gold Tumbles as Brent Crude Surges Past $100
The price of gold softened on Friday after falling 2% in the previous session. This decline was partly due to Brent crude's surge back above $100 a barrel, which has increased inflation concerns and strengthened the case for higher interest rates.
Brent crude rose by 7% on Thursday, marking one of the steepest rises since the war started. The dollar also rode US Treasury yields higher, with benchmark 10-year yields at their highest since January 2025.
The US Federal Reserve is widely expected to keep rates unchanged next week, although traders are pricing in an 81% chance of a hike in September, according to the CME FedWatch Tool. Higher interest rates typically reduce the appeal of non-yielding gold.