Gold futures fall 1% as a lack of progress in U.S.-Iran peace talks pushes oil
prices higher, fueling concerns over prolonged disruptions and higher inflation;
“markets are increasingly expecting higher interest rates to combat inflation
risks tied to elevated energy prices, which is negative for non-yielding gold,”
says Soojin Kim from MUFG, while “strong U.S. labour market data continues to
support expectations that the Fed will keep rates elevated for longer,” and in
early European trading, the move reflects ongoing sensitivity to energy-driven
inflation pressures and interest rate expectations.
