At a Glance
Spot gold fell 0.2% to $4,318.56 an ounce.
Gold futures dropped 0.7% to $4,365.00.
Markets now see nearly a 70% chance of a Fed rate hike on September 15–16.
Brent crude moved above $95, while U.S. crude topped $91.
Gold has fallen for four straight sessions after gaining nearly 10% in August.
A stronger dollar and rising yields are putting fresh pressure on gold as oil prices add to inflation fears.
Gold extended its losing streak on Wednesday, falling to its lowest level in more than three weeks. A stronger U.S. dollar, rising Treasury yields and growing expectations for a Federal Reserve rate hike are weighing on the metal.
Renewed U.S.-Iran tensions are adding another layer of pressure by pushing oil prices higher and raising fresh inflation concerns.
KEY DETAILS
At 05:10 ET, XAU/USD was down 0.2% at $4,318.56, while gold futures fell 0.7% to $4,365.00. The U.S. Dollar Index climbed to 99.79.
Gold has now pulled back from last week’s high near $4,700, following a nearly 10% gain in August.
The latest move came after fresh U.S. strikes against targets in Iran and Tehran’s reported retaliation. Brent crude rose above $95 a barrel, while U.S. crude climbed above $91 as traders assessed potential disruptions to energy flows through the Strait of Hormuz.
Markets are now pricing in close to a 70% probability of a Fed rate hike at the September 15–16 meeting.
MARKET REACTION
Thirty-year U.S. Treasury yields moved above 5.28%, while global government bond yields reached their highest level since 2008. The stronger dollar has added another hurdle for dollar-priced gold.
WHY IT MATTERS
For gold traders, the key battle is between inflation fears and rising rates. Higher yields and a stronger dollar can pressure gold, while geopolitical tensions may continue supporting demand for the safe-haven asset.
Gold has also broken below its 200-day moving average, adding to the technical pressure.
Traders will watch the Fed’s rate signals, oil prices, Treasury yields and developments in the U.S.-Iran conflict for clues on gold’s next move.
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Source: Investing.com
Time: 6:00 PM EEST
