Gold Drops to Eight-Month Low Below $4,000 as Middle East Tensions Fuel Rate Hike Bets
Gold price (XAU/USD) fell to an eight-month low near $3,975 during early Asian trading on Friday, extending its decline as rising Middle East tensions stoked inflation concerns and reinforced expectations of higher US interest rates.
Gold extended its slide during the Asian session on Friday, touching an eight-month low around $3,975. The precious metal has been under pressure as escalating geopolitical tensions in the Middle East fan inflation fears.
Market participants now price in a greater likelihood of the Federal Reserve maintaining elevated interest rates to combat potential price pressures, diminishing the appeal of non-yielding assets like gold.
The broader risk-off tone and a firmer US dollar added to the selling pressure, keeping XAU/USD below the key psychological $4,000 level.
Source: FXStreet Forex News