Gold price today: Why gold is falling as oil rises and Fed rate hike bets grow | Business News - Hindustan Times

AI desk brief

Gold slipped as higher oil prices stoked inflation concerns and lifted bets that the Fed could keep policy tighter for longer, with spot gold down 0.3% at $4,390.50/oz and December futures off 0.9% at $4,435.00/oz by 0816 GMT. Intraday, spot gold traded as high as $4,442.70/oz, underscoring still-high volatility around the release of key U.S. inflation data later this week.

The move was framed as a tug-of-war between softer dollar conditions and a firmer rates backdrop. Nikos Tzabouras of Jefferies-owned Tradu.com said gold is “caught between Fed rate hike bets and dollar softness,” but that rising oil prices are raising inflation risks and expectations for higher rates, which is weighing on the metal.

Oil’s multi-week highs were tied to Middle East supply concerns after Houthis attacked energy facilities and cities in Saudi Arabia, keeping geopolitical risk bids in crude elevated. For gold, the near-term catalyst is the U.S. inflation print: a hotter number would reinforce higher-for-longer rate expectations and likely keep pressure on bullion, while a softer reading could quickly reverse the move given the metal’s recent intraday swings.