Gold prices are on track to record their largest weekly loss since early June, as mounting bets on Federal Reserve rate hikes overshadow the traditional safe-haven appeal of bullion amid escalating tensions in West Asia.
The precious metal has struggled to find footing, hovering in a narrow range around $4,000 an ounce in recent weeks.
The current weekly slide continues a broader retreat that saw Comex gold futures dip to an intraday low of $4,012 earlier in the week, while silver fell to $57.
This consolidation follows a severe 14% decline in the second quarter, marking gold’s worst performance since 2013.
The current weekly slide continues a broader retreat that saw Comex gold futures dip to an intraday low of $4,012 earlier in the week, while silver fell to $57.84, extending losses for a fourth consecutive session.
The primary driver of the sell-off is the shifting macroeconomic narrative.
Renewed geopolitical friction in the Middle East has reignited concerns about global inflation, prompting traders to price in a more hawkish stance from the Federal Reserve.