Gold slips as Middle East tensions fuel inflation fears
Spot gold fell 0.2 percent to 4,476.50 dollars as renewed hostilities in the Middle East pushed crude oil prices higher on Wednesday. Investors worry that rising energy costs will force the Federal Reserve to keep interest rates elevated to combat persistent inflation.
Gold prices fell 0.2% to $4,476.50 per ounce on Wednesday morning as escalating Middle East hostilities pushed energy costs higher. The decline followed a rise in oil prices of more than 1%, which reinforced investor fears that persistent inflation will keep interest rates elevated. Higher borrowing costs reduce the appeal of non-yielding bullion during periods of geopolitical instability.
### Mideast Tensions Fuel Inflationary Fears Renewed conflict in the Gulf flared on Wednesday morning after the United States military reported thwarting Iran missile attacks. These strikes targeted Bahrain and Kuwait, signaling a breakdown in diplomatic efforts between Washington and Tehran. United States Secretary of State Marco Rubio stated on Tuesday the administration has not offered sanctions relief in exchange for reopening the Strait of Hormuz.
