Gold drops 1.8% on oil shock, revives Fed rate hike bets
Gold price fell over 1.8% as US-Iran tensions fuel oil supply disruption fears, driving energy prices higher and reviving expectations of further Fed rate hikes.
XAUUSD
Gold tumbled more than 1.8% in Asian trade as a sudden spike in oil prices, triggered by escalating US-Iran tensions, raised the specter of supply disruptions. Energy costs surged, reigniting inflation concerns and strengthening the case for additional Federal Reserve tightening.
The XAU/USD pair broke below key support levels, moving away from the $4,000 psychological mark. Traders now assess whether the precious metal can find a floor or extend losses as the dollar firms on hawkish Fed repricing.
Source: FXStreet Forex News