Gold prices fall 3.6 percent on stronger dollar and rates
Gold fell 3.6 percent to $4,587.55 as Trump signaled continued action in Iran. Rising oil prices and a stronger dollar boosted market rate hike expectations.
Gold prices retreated sharply on Thursday as a strengthening dollar and rising energy costs dampened investor appetite for the precious metal. The market reaction followed statements from the United States indicating a continuation of military actions in Iran, which has heightened inflation concerns and bolstered expectations for sustained higher interest rates.
Spot gold fell 3.6% to $4,587.55 per ounce by 9:15 a.m. EDT (1315 GMT), after previously reaching a two-week high. U.S. gold futures saw a more pronounced decline, dropping 4.2% to $4,613.30. The rise in the U.S. dollar has made bullion more expensive for holders of other currencies, a trend reflected in the performance of pairs such as USD/CAD.
