Gold Slides As Fresh Attacks Dim Expectations Of De-escalation In Gulf

Gold prices fell further on Friday as attacks in the Gulf region intensified, eroding near-term odds of a U.S. Fed rate cut and heightening inflation concerns. The development is prompting risk-off positioning and could keep real yields elevated, pressuring gold while increasing sensitivity of commodity and energy markets to geopolitical risk.

Analysis

Gold prices fell further on Friday as attacks in the Gulf region intensified, eroding near-term odds of a U.S. Fed rate cut and heightening inflation concerns. The development is prompting risk-off positioning and could keep real yields elevated, pressuring gold while increasing sensitivity of commodity and energy markets to geopolitical risk.