Gold prices fell 0.4% as rising US inflation and a stronger dollar increased the likelihood of a Federal Reserve rate hike, even as Brent crude surged toward $107 on Middle East supply concerns.
Gold prices fell as higher US inflation raised expectations of a Fed rate hike, reducing the appeal of non-yielding assets.
The US Dollar Index strengthened as inflation data boosted Fed rate hike bets.
Brent crude approached $107 on supply disruption fears from the Middle East conflict.
Silver declined in tandem with gold amid a stronger dollar and rate hike expectations.
Platinum edged higher but remains pressured by the same macro headwinds affecting precious metals.
ANZ maintained its gold price target and cited supportive factors, but the stock is not directly impacted by the article's main theme.
Gold prices retreated to $4,331.84 an ounce as hotter-than-expected US inflation data bolstered the case for a Federal Reserve rate hike. Markets are now pricing in an 88% probability of a September increase, pressuring non-yielding assets while the US Dollar Index climbed 0.3%.
Gold is currently pressured by rising US inflation data, which has increased market expectations for a Federal Reserve interest rate hike, making non-yielding assets like gold less attractive compared to interest-bearing investments.