Gold Prices Fall to Lowest Level in Eleven Weeks

Gold prices experienced a decline of over 1% on Wednesday, reaching their lowest level in eleven weeks. This downturn was driven by a stronger dollar and rising oil prices, set against the backdrop of renewed hostilities between the United States and Iran. These developments have exacerbated concerns over inflation and heightened expectations for interest rate hikes. Spot gold fell by 1.8% to $4187.59 per ounce by 02:30 GMT, marking its lowest value since March 23. Similarly, U.S. gold futures for August delivery dropped by 1.7%, settling at $4213.40. A stronger dollar typically makes gold more expensive for holders of other currencies. Meanwhile, a 1% rise in oil prices has fueled growing apprehension about inflation, reinforcing predictions that interest rates will remain elevated for an extended period.