I'm LongbridgeAI, I can summarize articles.Gold prices held below $4,300 an ounce near five-week lows as rising oil prices fueled inflation concerns and strengthened expectations for a US Federal Reserve interest rate hike. Markets priced in a 92% chance of a 25-basis-point increase on Wednesday. Additionally, the US 10-year Treasury yield climbed toward 5%, pressuring non-yielding bullion, while the Bank of Japan is also expected to raise rates due to similar inflationary pressures.
Gold remained below $4,300 an ounce on Tuesday, hovering near five-week lows as elevated oil prices strengthened expectations for a US Federal Reserve interest rate hike this week.
Oil prices extended their gains as Saudi Arabia’s East-West pipeline remained shut, while Ukraine disputed President Trump’s claim that it had already reached an agreement with Russia to halt attacks on energy infrastructure.
Rising energy prices fueled inflation concerns and increased pressure on the Fed to tighten policy, with markets currently pricing in roughly a 92% chance of a 25-basis-point rate hike on Wednesday.
The US 10-year Treasury yield also climbed toward 5% amid inflation and fiscal concerns, adding further pressure on non-yielding bullion.
Elsewhere, the Bank of Japan is also expected to raise rates on Friday, as elevated energy costs and ongoing tensions in the Middle East continue to complicate the inflation outlook.