Oil Prices Fuel Gold Volatility Amid Fed Rate Hike Fears

Gold prices are under pressure due to rising US Treasury yields and a strong US dollar. The COMEX gold price finished around 1.50% lower at $4,408.90 an ounce in the international market.

The recent surge in oil prices due to escalating tensions in the US-Iran war has added another layer of volatility to gold. This has complicated the Fed's inflation outlook and raised the odds of a US Fed rate hike at next week's meeting.

According to Ponmudi R, CEO at Enrich Money, 'Gold rate today is on edge as another surge in oil prices fed into inflation expectations and pushed markets to sharply raise the odds of a US Fed rate hike at next week's US Fed meeting.'