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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid escalating geopolitical tension between the US and Iran, gold prices slipped under the dual pressure of rising oil prices following fresh US strikes and renewed expectations of a Federal Reserve rate hike. According to Reuters reports, this combination diminished gold's safe-haven appeal, as oil flows stoked inflation fears while the Fed leans toward tighter monetary policy.
The US strikes on Iranian targets pushed crude prices sharply higher, further weighing on gold as an alternative asset. Meanwhile, markets await US inflation and employment data that could support a rate hike, as investors remain divided on the Fed's path. Recent data showed Canadian inflation rising to 3.2% year-on-year, reinforcing global inflationary pressures.
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Sign InTraders are now focusing on upcoming Fed officials' remarks and US labor market data to gauge the rate path. Gold's movements will remain tied to developments in the US-Iran geopolitical situation and any fresh signals from the central bank, as confirmation of a rate hike could deepen the decline.