Gold Prices Fall - Rising Oil Prices Heighten Inflation Concerns
Gold prices declined slightly on Friday as another surge in oil prices strengthened inflation expectations and sparked market anticipation of potential interest rate increases in the United States.
Spot gold fell 0.3% to $4,532 per ounce, while gold futures declined 0.6%.
Brent Crude prices remain elevated and significantly exceed pre-war levels. Investors fear that surging energy costs will further accelerate global inflation, pushing central banks, including the Federal Reserve System, toward raising interest rates.
Expectations of higher rates are putting pressure on gold, as non-yielding assets like precious metals become less attractive in such an environment.
At the same time, the US dollar is near a six-week high, making gold more expensive for foreign buyers. Investors view the dollar as a relatively safe asset against the backdrop of the Iran conflict.
Market attention remains focused on ongoing diplomatic negotiations surrounding the resolution of Iran's conflict. On Friday, Iran's Foreign Minister met with Said Mohsin Naqvi, where issues concerning a peace agreement between the United States and Tehran were discussed.
US Secretary of State Marco Rubio stated that "positive signs" are visible in the negotiations, though he cautioned against excessive optimism regarding the final outcome.
Meanwhile, uncertainty persists regarding the future of the Strait of Hormuz, which is the transit route for approximately one-fifth of global oil. Existing restrictions in the strait continue to exert pressure on oil prices and global inflation.
