Gold Prices Are Falling on Global Markets: What’s Behind the Trend
10 July 18:12
Gold prices are falling on Friday, July 10, and may post a weekly decline: rising oil prices and growing tensions between Washington and Tehran are fueling fears of a longer period of tight monetary policy by the Fed. This is reported by "Komersant Ukrainian", citing Reuters.
The spot price of gold fell 0.44% to $4,102.79 per troy ounce, losing about 2% since the start of the week.
“Prices may once again test the $4,000-per-ounce level as psychological support if tensions escalate further and oil prices continue to rise,” noted Khan Tan of Bybit.
Oil prices may end the week higher amid the aforementioned intensification of hostilities between the U.S. and Iran and new concerns about export flows from a key production region.
Rising energy prices are driving up inflation, which could prompt central banks to tighten monetary policy and negatively impact non-interest-bearing assets such as gold. Concerns about high inflation at the Federal Reserve intensified at its June meeting, according to minutes released on Wednesday.
Markets are currently pricing in a 58% probability of a rate hike in the U.S. in September, according to the CME’s FedWatch tool.
Silver, meanwhile, fell 0.81% to $59.5 per ounce, while platinum rose 0.34% to $1,615.78 per ounce, and palladium rose 1.66% to $1,268.16.
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