US EditionGold Loses Its Shimmer in Asia over Rising Oil Prices, Hawkish Fed Stance
Spot gold fell 1.1% to $4,568.82 an ounce as higher oil prices revived inflation worries and dimmed expectations for rate cuts.
- Gold prices fell more than 1% on Friday, heading for a similar weekly loss as elevated oil prices fanned inflation concerns that discourage central banks from cutting interest rates.
- Elevated oil prices, impacted by Iran war tensions, revived inflation worries that make interest-bearing assets more attractive to investors, according to analysts. Brent crude futures rose on Friday as energy costs surged.
- Spot gold fell 1.1% to $4,568.82 per ounce on Friday, tracking a 1.2% weekly loss. The decline reflects the metal's negative short-term correlation with rising energy costs.
- The European Central Bank and the Bank of England kept interest rates unchanged on Thursday, as expected, following similar holds by the Federal Reserve and the Bank of Japan earlier in the week.
- UBS analyst Giovanni Staunovo retains a constructive outlook for the next 12 months, citing "Uncertainty surrounding upcoming midterm elections, expectations of a weaker U.S. dollar over time, and declining real interest rates will likely support investment demand alongside continued central bank demand.
11 Articles
11 Articles
Gold loses its shimmer in Asia over rising oil prices, hawkish Fed stance
Asia’s gold rush is starting to lose some of its lustre, as surging oil prices due to the Iran war dampen rate-cut hopes that recently helped fuel one of the metal’s strongest rallies in years. A surge in energy costs has revived inflation concerns and made central banks less likely to cut rates, and this has made interest-bearing assets more attractive, according to analysts. Gold prices fell by 12 per cent from US$5,247.90 per troy ounce on Fe…
Times of India
Gold heads for weekly loss amid oil-driven inflation concerns
Gold prices held steady Friday, but a weekly dip was likely as soaring oil prices fueled inflation concerns, impacting interest rate expectations. Meanwhile, geopolitical tensions in the Strait of Hormuz and a significant drop in India's gold imports due to tax issues also played a role in the market's movements.
Gold or Oil? History Shows Which Hedge Protects Capital When Inflation Fear Returns
Brent crude hit $126.41 a barrel, its highest since March 2022, before falling to $113.89 as the U.S.-Iran war shut the Strait of Hormuz. Spot gold rose 2.2% to $4,639.26 an ounce. U.S. PCE inflation climbed 3.5% year-on-year in March. The Federal Reserve kept rates steady at 3.50%-3.75% on Wednesday. The post Gold or Oil? History Shows Which Hedge Protects Capital When Inflation Fear Returns appeared first on TechStock².
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