Gold Rises on Iran Conflict, Renewing Fed Rate Hike Bets
Gold gained nearly 1% on Friday as geopolitical tensions between the US and Iran pushed energy prices higher, stoking inflation fears and reviving expectations that the Federal Reserve may need to raise interest rates.
Gold edged higher on Friday, rising approximately 0.92%, as the escalating US-Iran conflict boosted energy costs. The spike in energy prices heightened inflation concerns, leading markets to reassess the likelihood of further Federal Reserve rate hikes.
The precious metal benefited from safe-haven demand amid geopolitical uncertainty, while the prospect of tighter monetary policy added a complex layer for traders. The move underscores how geopolitical shocks can quickly revive hawkish Fed expectations.
Source: FXStreet Forex News