Gold dropped below $4,000 per ounce and is on track for a weekly decline of more than 3%, according to a report cited by ChainCatcher from Jinshi. The move came as escalating hostilities between the United States and Iran added to market concerns. The report said higher energy prices could keep inflation elevated and prompt the Federal Reserve to raise interest rates. Soojin Kim, an analyst at Mitsubishi UFJ Financial Group, said recent price action suggests the market is placing more weight on the prospect that U.S. rates will stay higher for longer, instead of focusing on gold’s traditional safe-haven appeal. The remarks point to interest-rate expectations as a key factor in the latest move in bullion prices.
Gold fell below $4,000 per ounce and may post a weekly loss of more than 3%, according to a Jinshi report cited by ChainCatcher.
The report said escalating hostilities between the United States and Iran have added to market concerns. Rising energy prices could keep inflation elevated and lead the Federal Reserve to raise interest rates.
Soojin Kim, an analyst at Mitsubishi UFJ Financial Group, said recent price moves show the market is putting greater weight on the possibility that U.S. interest rates will remain higher for longer, rather than on gold’s traditional safe-haven demand.
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