Gold hits six week low as oil prices fuel inflation fears
Spot gold fell 1.1 percent to 4,488.99 dollars per ounce on Monday as drone strikes in the Middle East drove crude prices higher. Rising energy costs have reinforced expectations that the Federal Reserve will maintain higher interest rates to combat persistent inflation.
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Gold fell 1.1% to $4,488.99 per ounce overnight, hitting its lowest price level since March 30. Rising Middle East tensions pushed energy costs higher, fueling inflation fears and expectations for higher-for-longer interest rates. Investors are pivoting toward yield-bearing assets as the opportunity cost of holding non-yielding bullion increases.
