Gold drops to two month low on inflation and rate fears
Spot gold fell 2.7 percent to $4,148.86 as renewed fighting between the U.S. and Iran dimmed peace hopes and fueled concerns over persistent inflation. Investors are shifting focus to upcoming CPI data as rising oil prices increase the likelihood of further interest rate hikes later this year.
Xurve View
Insights:
Xurve View
Gold fell 2.7% to $2,312.50 per ounce midday Wednesday as renewed conflict in the Middle East sparked fears of persistent inflation. The drop marks the lowest price level for the metal since March 23. Investors are prioritizing interest rate risks over traditional safe-haven demand as the United States and Iran resume direct hostilities.
