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.
