Gold slides over 1% as Middle East strikes stoke rate-hike fears
AI Market Summary
Gold fell over 1% as Middle East escalation lifted oil and renewed inflation concerns, reinforcing higher-for-longer U.S. rate expectations. With FedWatch implying a high probability of a September hike and key U.S. CPI/PPI and retail sales ahead, rising real-rate expectations are pressuring zero-yield assets. Weakness extended across precious metals, underscoring broad de-risking in the complex despite heightened geopolitical risk.
Impact level
● High
Affected assets
NCCOGOLD2USD/USDT-1.34%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▼ Bearish
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Large-scale missile and drone exchanges between U.S. and Iranian forces from the weekend into Monday lifted oil prices after Tehran said it hit U.S. military facilities across the Gulf and kept the Strait of Hormuz closed. Spot gold fell 1.4% to $4,064.02 an ounce, extending losses to a second straight session, while silver and platinum also declined. Markets saw the geopolitical supply shock and tighter monetary policy expectations as a double headwind, with CME FedWatch pricing a 69% chance of a U.S. rate hike in September.
