Gold slides 1% to $4,357.88 as oil rally stokes Fed hike bets
Gold dropped 1% to $4,357.88 an ounce as Middle East tensions lifted oil prices and markets raised the probability of a Federal Reserve rate hike this month.
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Bullion traded down to $4,357.88 per ounce, a decline of 1%, as rising Middle East tensions pushed oil prices higher. The move in energy markets added to concerns that inflation may stay elevated.
Traders now see more than a 50% chance that the Federal Reserve raises rates this month. That repricing is a headwind for non-yielding assets such as gold.
Higher oil prices and firmer rate expectations weighed on the metal, even as geopolitical uncertainty often supports haven demand.
Source: First Squawk