Energy Surge Pressures Gold, Markets See “Higher for Longer”
Gold prices fell sharply on Monday (May 4) after US-Iran tensions escalated, boosting the dollar and rekindling inflation concerns that have kept interest rate expectations high. Spot gold fell 2.6% to US$4,524.40/oz at 4:15 p.m. ET, while US gold futures for June closed down 2.4% at US$4,533.30/oz.
The pressure came after Iran reportedly attacked several ships in the Strait of Hormuz and started a fire at a UAE oil port, marking the biggest escalation since a ceasefire was announced four weeks ago. At the same time, the dollar strengthened and Brent jumped more than 5%, a combination that typically weighs on gold by making the dollar-denominated precious metal more expensive for non-US buyers.
The energy surge amplified inflation concerns and extended the “higher for longer” narrative, which reduces the appeal of non-yielding gold. Barclays joins the list of research houses predicting no Fed policy easing this year. This week, the market awaits a series of US data, including job openings, the ADP report, and April payrolls.
The decline also spread to other precious metals: silver fell 3.5% to US$72.67/oz, platinum fell 2.2% to US$1,946.15/oz, and palladium fell 3% to US$1,478.74/oz. (Arl)*
Source: Newsmaker.id
