Gold prices face near-term pressure as Fed rate hike expectations climb to 69.4% and geopolitical instability drives a sharp rally in global oil markets.
Gold futures opened at $4,359.40 on Friday, marking a 1.1% decline as markets brace for potential Federal Reserve rate hikes. Heightened U.S.-Iran tensions have simultaneously pushed Brent crude prices up 8.43% over the past week, further complicating the inflation outlook.
Gold is facing downward pressure because rising expectations of a Federal Reserve interest rate hike increase the opportunity cost of holding non-yielding assets like bullion.