Why does gold fall on US-Iran escalation?
Escalation pushes oil prices up, which raises inflation expectations and increases the likelihood of Federal Reserve rate hikes. Higher rates strengthen the dollar and increase the opportunity cost of holding gold, which pressures #XAU /#usd down. #USJulyCPI&PPIDueThisWeek #XUAT #GOLD
Escalation pushes oil prices up, which raises inflation expectations and increases the likelihood of Federal Reserve rate hikes. Higher rates strengthen the dollar and increase the opportunity cost of holding gold, which pressures #XAU /#usd down. #USJulyCPI&PPIDueThisWeek #XUAT #GOLD