Gold prices fell in early Thursday trading, as investors continued to close profitable positions in the precious metal. The conflict involving the US, Israel and Iran is raising concerns over future oil and gas supplies, with investors anticipating higher energy costs and rising inflation. Such a scenario is leading markets to expect a shift towards more hawkish monetary policy from central banks, including the Federal Reserve. The US central bank is now expected to keep rates on hold throughout 2026, with the possibility of a rate hike towards the end of the year gaining traction among traders. Against this backdrop, the US dollar has been strengthening and Treasury yields are rising, a dynamic that weighs on non-yielding gold. Additionally, there have been reports that some central banks in emerging economies are selling gold to acquire hard currency needed to cope with higher energy costs.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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