Gold Pressured by Oil-Led Inflation Fears, Says ING
ING analysts report that gold faces headwinds as rising oil prices stoke inflation concerns, pushing yields and the US dollar higher.
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Gold has come under pressure as higher oil prices fuel inflation fears, according to ING analysts Warren Patterson and Ewa Manthey.
The report notes that the rally in crude is driving up bond yields and the US dollar, creating a challenging environment for the precious metal. Gains in the dollar and yields typically weigh on gold by increasing the opportunity cost of holding non-yielding assets.
ING's analysis suggests that the oil-led inflation narrative is capping any potential recovery in gold prices for now.
Source: FXStreet Forex News