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fxJul 7, 2026, 4:46 AM

Gold Drops as Inflation Fears Offset Fed Rate Hike Bets

Gold (XAU/USD) fell for a second straight day, slipping to the $4,125-$4,124 region during Asian trading on Tuesday, pressured by renewed inflation worries linked to rising crude oil prices amid Strait of Hormuz tensions.

XAUUSD

Gold extended its decline for a second consecutive session, dropping to the $4,125–$4,124 range during Asian hours on Tuesday. The move lower came as reawakened inflation fears offset the dampened outlook on Federal Reserve rate hikes and a softer US dollar.

Crude oil prices edged higher on renewed geopolitical tensions in the Strait of Hormuz, which revived inflationary pressures and weighed on gold's appeal. The yellow metal remains sensitive to shifts in rate expectations and inflation dynamics.

Source: FXStreet Forex News