Gold Falls 2% as Fed Hike Bets Rise
Spot gold is on track for a third consecutive weekly decline, falling below $4,400 as sticky inflation data and a stronger US dollar fuel expectations of further Federal Reserve rate hikes. The metal faces additional headwinds from oil prices topping $100 and Treasury yields approaching the 5% mark, though geopolitical risks in the Middle East continue to provide some support.
Market commentary from GN auto markets/commodities highlights that the 10-year US Treasury yield is nearing the psychological 5% threshold, a level that could intensify downward pressure on gold if it breaks and holds. Additionally, WTI crude oil has surpassed $100 per barrel due to Middle East tensions, a factor that is complicating the outlook by simultaneously boosting safe-haven demand and reinforcing inflation concerns that keep rate-hike bets elevated.
Source: GN auto markets/commodities: gold pricesSpot gold dropped over 2% this week, tracking a third consecutive loss as strong inflation data fueled expectations of further Federal Reserve rate hikes.
Source: GN markets/inflation (en-US)
