Gold Prices Slide Toward Weekly Loss as Oil Surge Fuels Fed Rate Anxiety
Gold prices face their sharpest weekly decline in four months as rising oil costs and Federal Reserve interest rate expectations weigh on the market.
POLICY WIRE — New York, USA — Gold prices retreated on Friday, positioning the precious metal for its most significant weekly drop in more than four months. The decline comes as surging oil prices intensify market concerns that the Federal Reserve may maintain elevated interest rates for an extended period.
By 0351 GMT, spot gold had slipped 0.2% to $4,016.27 per ounce, recovering slightly after hitting its lowest point since July. Later in the day, market activity showed mixed results, with spot gold advancing 0.7% to $4,346.00/oz by 15:34 ET (19:34 GMT), while gold futures dipped 0.4% to $4,388.26/oz.
Investors are currently bracing for the upcoming Federal Reserve policy meeting and are closely monitoring key inflation data. The broader market sentiment has been pressured by a sell-off in U.S. Treasury bonds, a stronger dollar, and escalating hostilities in the Middle East, which have collectively contributed to a weekly decline of nearly 2% for the contracts.
Reporting by Policy-Wire (PW)
