Business
Gold Rises, With Middle East and Fed Policy in Focus
Gold prices were rising as escalating attacks in the Middle East pushed oil higher, raising concerns about inflation and interest-rate hikes. In early trading, New York futures were up 0.2% to $4,446.50 a troy ounce.
According to CME Group’s FedWatch tool, traders are now pricing in a 60% chance that the Federal Reserve will raise rates when it meets next week.
“Trade barriers and geopolitical disruption can support bullion as investors seek defensive assets, but if those same developments push energy and goods inflation higher, expectations for tighter monetary policy can lift Treasury yields and increase the opportunity cost of holding nonyielding gold,” said Naeem Aslam from Zaye Capital Markets.
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