Gold prices retreat amid Fed rate hike expectations, while geopolitical instability in the Middle East drives a significant surge in global oil prices.
Gold futures dropped 0.8% to $4,332.50 per ounce on Monday as markets brace for a potential Federal Reserve interest rate hike. Meanwhile, crude oil prices are rallying sharply following reports of attacks on Saudi Arabian infrastructure and a vessel strike in the Strait of Hormuz.
While gold is typically a safe-haven asset, current downward pressure is driven by widespread market expectations that the Federal Reserve will raise interest rates this week.
Oil prices are rising due to weekend attacks on Saudi Arabian oil infrastructure and a vessel strike in the Strait of Hormuz, which have heightened supply disruption concerns.