Gold Holds Decline as Surging Energy Costs Raise Rate-Hike Bets

Gold retreated as the worsening Middle East conflict pressured energy prices and boosted expectations that the US Federal Reserve will tighten policy to contain inflation. The shift in rate expectations is a headwind for non-yielding gold and likely contributed to the downside move.

Analysis

Gold retreated as the worsening Middle East conflict pressured energy prices and boosted expectations that the US Federal Reserve will tighten policy to contain inflation. The shift in rate expectations is a headwind for non-yielding gold and likely contributed to the downside move.