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Gold 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.
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Trading volume is down in major Asian markets due to holidays.
·Brazil
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Times of India+2 Reposted by 2 other sources
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.
·India
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Coverage Details
Total News Sources12
Leaning Left1Leaning Right4Center1Last UpdatedBias Distribution66% Right
Bias Distribution
- 66% of the sources lean Right
66% Right
L 17%
C 17%
R 66%
Factuality
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