Gold prices are on track for a 3% weekly decline, hitting a six-month low near $4,191 per ounce as rising oil prices fuel inflation risks and intensify bets on Federal Reserve rate hikes. Traders are currently weighing these inflationary pressures against hopes for a Middle East peace deal that could ease the energy shock. Analysts at OCBC suggest that a recovery in gold requires softer oil prices and a peak in rate repricing, while investors remain hesitant due to ongoing geopolitical risks involving Iran.
In a sudden shift from recent sideways trading, gold prices surged past the $4,200 per ounce threshold driven by unexpected diplomatic optimism.
Read the full storyOCBC analysts suggest gold's recovery hinges on softer oil prices and a definitive peak in Federal Reserve interest rate repricing.
Spot gold fell toward $4,191 per ounce as persistent inflation risks from high oil prices revived expectations for Federal Reserve rate hikes.