New york: Gold fell on Wednesday to its lowest in more than three weeks, as the escalating Middle East conflict lifted oil prices and stoked inflation and rate-hike fears, while investors focused on upcoming US jobs data. Spot gold was down 0.6% at $4,304.01 per ounce, its lowest since August 7. Prices were headed for a fourth straight session of losses and remained below the 200-day moving average, a closely watched technical level. US gold futures for December delivery fell 1% to $4,350.80.
According to Qatar News Agency, the decline in gold prices comes amid rising geopolitical tensions in the Middle East, which have pushed oil prices higher, leading to increased inflation concerns. This has fueled speculation about potential interest rate hikes by the Federal Reserve, further affecting gold's appeal as a safe-haven asset.
Among other metals, spot silver lost 1% to $63.60 per ounce, platinum edged 1% lower to $1,722.23, and palladium fell 1.4% to $1,292.21. The metals market is closely watching the upcoming US jobs data, which could provide further direction on interest rate expectations and impact precious metal prices.
The current market environment reflects a complex interplay between geopolitical events, economic data, and monetary policy expectations, all of which are contributing to the recent fluctuations in the prices of precious metals.