đĄ PRECIOUS METALS | Gold Nears a Nine-Week Low
According to Bloomberg, gold has moved close to a nine-week low as markets increasingly expect the U.S. Federal Reserve (Fed) could raise interest rates at least once more before the end of this year.
Higher interest rates can pressure gold because it does not pay interest, while cash and interest-bearing assets become more attractive.
Meanwhile, rising tensions around the Strait of Hormuz have increased concerns about war-driven inflation. Any disruption to oil supplies could push inflation higher.
đž Higher rates â Pressure on Gold
đž Geopolitical tensions & inflation â Safe-haven demand for Gold
đ Bottom line: Gold is facing pressure from rate-hike expectations, while geopolitical risks could provide support. Market uncertainty remains high.
According to Bloomberg, gold has moved close to a nine-week low as markets increasingly expect the U.S. Federal Reserve (Fed) could raise interest rates at least once more before the end of this year.
Higher interest rates can pressure gold because it does not pay interest, while cash and interest-bearing assets become more attractive.
Meanwhile, rising tensions around the Strait of Hormuz have increased concerns about war-driven inflation. Any disruption to oil supplies could push inflation higher.
đž Higher rates â Pressure on Gold
đž Geopolitical tensions & inflation â Safe-haven demand for Gold
đ Bottom line: Gold is facing pressure from rate-hike expectations, while geopolitical risks could provide support. Market uncertainty remains high.