Gold hits 11-week low on US-Iran tensions and rising dollar
Spot gold fell 1.9% to $4,181.04 per ounce on Wednesday as renewed conflict between the U.S. and Iran pushed oil prices and the dollar higher. Investors are increasingly pricing in a December interest rate hike as inflation concerns mount following military strikes in the Middle East.
Gold fell 1.9% to $4,181.04 per ounce on Wednesday as renewed hostilities between the United States and Iran boosted the dollar and oil. The drop marks an 11-week low for the bullion, which saw August U.S. gold futures also shed 1.9% to $4,204.70. Rising inflation concerns and a hawkish interest rate outlook are currently diminishing the appeal of non-yielding assets.
### Geopolitical Tensions Drive Dollar Strength The United States launched strikes against Iran on Tuesday following reports that Tehran shot down an American helicopter in the Strait of Hormuz. Iran’s Revolutionary Guards retaliated on Wednesday with attacks against a U.S. base in Jordan and 21 other Gulf targets. These escalations deepened doubts over a potential peace deal and a fragile truce.
