Rising crude costs overshadow geopolitical risks, pressuring gold as traders weigh higher-for-longer US interest rates.
Gold prices declined today despite escalating geopolitical tensions, as a surge in oil prices reignited inflation concerns and shifted focus to the Federal Reserve’s monetary policy outlook. The precious metal, typically a safe-haven asset, struggled to gain traction amid fears that persistent inflation could delay rate cuts.
Earlier this week, gold had tested multi-week highs on Middle East tensions, but the rally stalled as Brent crude climbed above $90 a barrel. Analysts noted that higher energy costs could feed into broader price pressures, complicating the Fed’s path to easing.
Markets showed limited reaction in early trading, with investors awaiting further signals on inflation and Fed policy. The dollar remained steady, while Treasury yields edged higher, reflecting expectations of prolonged tight monetary conditions.