Tensions between the US and Iran continue, and rate-hike expectations weigh on gold prices, keeping them soft

Golden Finance reports that on July 20, as tensions between the US and Iran escalated over the weekend, the market priced in the possibility that the Federal Reserve may need to raise rates to curb inflation, and gold prices fell accordingly. After dropping by more than 2% last week, gold is currently trading near $3,995 per ounce. Escalating hostilities in the Middle East, including an attack on a key oil facility in Kuwait and attempts to target ships transiting the Strait of Hormuz, led to a surge in oil prices. Tehran said that the ceasefire agreement between the US and Iran is effectively void, intensifying concerns that key energy supplies passing through this narrow waterway could face more severe disruptions. (Jin10)
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