Gold dropped to its lowest level since March, defying its usual role as a safe-haven asset during geopolitical crises. Investors focused instead on the inflationary impact of higher energy prices and the growing likelihood of tighter monetary policy.
Details:
• Spot gold fell to around $4,112 per ounce, according to the report.
• The precious metal extended losses for a second consecutive session.
• Oil prices climbed amid concerns over potential disruptions to global supply.
• Higher energy costs strengthened expectations that inflation could remain elevated for longer.
• Those expectations prompted investors to increase bets on a U.S. interest-rate hike in December.
• Gold typically benefits from geopolitical uncertainty, but concerns over higher borrowing costs outweighed safe-haven demand this time.
What to Watch?
Will oil continue to rise and add to global inflation pressures? Or will investors return to gold if tensions in the Middle East escalate further?
