Gold Rates

Gold hits 11-week low due to Iran-US tensions

Published by
Abdul khalique

ISLAMABAD: Gold prices in the global market fell to an 11-week low after the dollar and oil prices rose due to rising tensions between the US and Iran.

Spot gold prices fell 1.8 percent to $4,187.59 an ounce on Wednesday, the lowest level since March 23, while US gold futures also fell 1.7 percent to $4,213.40.

The strengthening dollar made gold more expensive for holders of other currencies, while a one percent increase in oil prices has further increased inflation concerns.

According to experts, the Federal Reserve’s possible policy, rising bond yields and a strong dollar are putting pressure on gold prices.

Meanwhile, the United States launched strikes on Iran after US President Donald Trump said Iran shot down a US Apache helicopter in the Strait of Hormuz, raising questions about a possible peace deal.

The market is pricing in a more than 70% chance that the Federal Reserve could raise interest rates by December.

Although gold is traditionally considered a safe haven against inflation, high interest rates are a negative for this unprofitable metal.

Other precious metals also fell, with silver down 1.5%, platinum down 2.8% and palladium down 0.8%.

Abdul khalique

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