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Gold prices fell on Fed stance and Middle East tensions

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Gold prices fell on Fed stance and Middle East tensions
الصورة: inbusiness.kz

أبرز النقاط

  • Gold prices are trading around $4,437 per ounce after last week's decline of over 3%.
  • Fed Chair Warsh's Jackson Hole speech and Strait of Hormuz tensions created pressure on gold.
  • US labor data this week will shape rate expectations; September hike probability 66%, December 89%.
  • Geopolitical risks support safe-haven demand for gold, but high interest rates keep prices pressured.

بالأرقام

0.3% decline to $4,437.10/ozWeekly decline of over 3%September rate hike probability 66%December rate hike probability 89%

Gold prices remained under pressure on Tuesday following last weekend's sharp decline. Spot gold fell 0.3% to $4,437.10 per ounce, while US gold futures rose 0.1% to $4,485.30. Investors are assessing tensions in the Middle East and this week's US labor data releases.

This week's focus is on US job openings, ADP employment, and non-farm payrolls data; these will determine the Fed's interest rate roadmap. Fed Chair Kevin Warsh emphasized in his Jackson Hole speech that more work is needed for a sustained return of inflation to the 2% target. Analyst Tony Sycamore noted that Warsh's hawkish tone and tensions in the Strait of Hormuz pushed oil prices higher, stating that while a single rate hike may not greatly affect gold, a series of hikes would change the situation.

According to the CME FedWatch tool, markets see a 66% chance of a rate hike in September and 89% in December. High interest rates create pressure for non-yielding gold, while US President Trump's threat of new strikes on Iran and rising oil prices are fueling inflation concerns. In other precious metals, silver rose 0.3%, platinum 0.1%, while palladium was nearly unchanged.

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الأسئلة الشائعة

Why did gold prices fall?
Gold, which recorded a drop of over 3% last week, remained under pressure due to Fed Chair Warsh's hawkish speech and rising oil prices driven by Middle East tensions.
How does the Fed's rate decision affect gold prices?
High interest rates reduce the appeal of non-yielding gold; markets expect a 66% chance of a hike in September and 89% in December.
How do Middle East tensions affect gold prices?
US-Iran tensions and rising oil prices are strengthening inflation worries; this could support gold's safe-haven status but rate expectations are keeping it pressured.

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