Gold declines as oil surge and rate cut doubts weigh
Gold fell to 4,466 dollars as rising oil prices fueled inflation and dimmed Fed rate cut hopes. Brent crude topped 115 dollars after weekend Houthi attacks.
Gold prices retreated on Monday as a sharp increase in energy costs intensified inflation concerns, subsequently lowering market expectations for interest rate cuts by the United States Federal Reserve. Spot prices for the yellow metal declined 0.6% to $4,466.99 per ounce, while U.S. futures for April delivery similarly dropped 0.6% to $4,496.30.
The precious metal has faced significant pressure throughout the month, losing more than 15% of its value. This represents the most substantial monthly contraction since October 2008. A primary factor in this decline has been the strengthening of the U.S. dollar, which has appreciated by more than 2% since the onset of the conflict involving Israel and Iran on February 28.
