Gold Falls as Renewed Hormuz Disruption Stokes Inflation Concern
Bloomberg.com • • business
Key Points:
- Gold prices fell by as much as 1.9% following renewed tensions in Middle Eastern waters, before recovering some losses to trade near $4,820 an ounce.
- The flare-up raised inflation concerns due to potential energy supply disruptions, driven by rising oil and gas prices.
- Tehran showed reluctance to participate in further diplomatic talks in Pakistan after the US blockade of the Strait of Hormuz and the seizure of a ship.
- Higher energy prices increase inflation risks, reducing the likelihood of Federal Reserve interest rate cuts, which negatively impacts gold as it yields no interest.
