Gold prices fell and oil prices rose yesterday as renewed hostilities between the United States and Iran raised inflation concerns and bolstered expectations of interest rate hikes. Spot gold dropped 1.03% to $4,045.95 per ounce.
US gold futures for August delivery also declined. The precious metal had recorded its lowest level in more than seven months last week. Brent crude futures rose following the attacks.
Gold is typically viewed as a safe haven, but the rise in energy prices driven by the conflict has fuelled inflation fears and expectations of higher interest rates, which weigh negatively on the non-yielding precious metal. Spot silver fell 1.21% to $58.4467 per ounce, platinum dropped 1.88% to $1,584, and palladium slipped 0.07% to $1,208.28.