Gold has lost four per cent to trade at a more than seven-week low, as rising oil prices stoke inflation concerns and bolstered bets on tighter monetary policy while a higher dollar and Treasury yields create further headwinds for the metal, Reuters reports.
Spot gold was down 3.5pc at $4,136.81 per ounce as of 1:30pm ET (10:30pm PKT), after falling to as much as $4,110.55, its lowest since Aug 5. US gold futures settled 3.5pc lower at $4,168.40.
“We’ve got crude oil prices sharply higher. And that suggests still more problematic price inflation, which suggests a tighter Federal Reserve monetary policy,” said Jim Wyckoff, a market analyst at American Gold Exchange.
Higher Treasury yields and the US dollar at multi-week highs were all “creating a perfect storm to push the metals prices sharply lower”, Wyckoff said.
