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Gold Falls as Iran War Clouds Rate Outlook
Gold prices plunged below $4,800 a troy ounce, pressured by a stronger dollar and dimming hopes for further interest-rate cuts in the near term.
In early European trading, futures fell 2.9% to $4,755 an ounce, while the U.S. dollar index was up 0.1% to 100.18, making dollar-denominated commodities more expensive for overseas buyers.
The Federal Reserve held interest rates steady on Wednesday, as widely expected, but highlighted the risks that higher energy prices will lift inflation. “The rally in oil followed renewed escalation in the Middle East, with markets increasingly pricing the risk of disruptions to energy supplies and shipping routes,” ING analysts said.
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