Gold Tilts Lower as Iran Impasse Continues to Fan Rate-Hike Bets
AI Summary
The recent decline in gold prices, driven by rising energy costs and expectations of further interest rate hikes by the Federal Reserve, signals a challenging environment for precious metals. Retail investors should remain cautious, as higher borrowing costs typically diminish gold's appeal, particularly in a market where yields on US Treasuries are also climbing. However, the long-term bullish outlook for gold remains intact according to some analysts, suggesting that investors may want to consider this dip as a potential buying opportunity if they believe inflationary pressures will persist.
(Bloomberg) -- Gold was set to end to the week lower as elevated energy prices continued to fuel expectations the Federal Reserve will need to raise interest rates further to combat inflation.
Bullion was trading around $4,270 an ounce, down more than 2% since last Friday. Oil steadied after surging on Thursday as the US and Iran remained at an impasse on restoring energy flows through the Strait of Hormuz. Negotiators were said to be exploring a phased deal that would see Tehran reopen the critical waterway and Washington lift a port blockade.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 25 September 2026.
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