XAU/USD falls for a second session as Middle East tensions lift oil prices, stoking inflation concerns and USD strength.
Gold prices extended losses on Friday, slipping below $4,050 in Asian trading as inflation fears fueled bets on prolonged US interest rate hikes. The decline marks a second consecutive session of selling pressure for the non-yielding metal.
The US Dollar strengthened to a near one-month high, driven by expectations of higher-for-longer rates amid escalating Middle East tensions. Crude oil prices surged as US strikes on Iran and retaliatory attacks disrupted shipping routes, exacerbating supply concerns.
US Central Command confirmed a 13th consecutive night of strikes targeting Iranian military assets, including drone storage and coastal surveillance sites. The operations aim to reduce threats to commercial vessels in the Strait of Hormuz, a critical chokepoint for global oil shipments.