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Gold Slumps for Fourth Straight Day as Oil and Dollar Rise

Renewed USIran strikes pushed oil above $76 a barrel, lifting Fed rate‑hike odds which strengthened the dollar, raising the cost of holding non‑yielding gold.

Overview

  • Gold fell for a fourth straight day on Wednesday, with international spot prices near $4,078 an ounce and Pakistan quotes around Rs430,000 per tola.
  • Fresh US strikes on Iran and attacks on vessels in the Strait of Hormuz sent Brent toward $76 a barrel and WTI above $72, reviving inflation worries that pushed markets to price higher US interest rates.
  • Rising market‑implied odds of a September Fed rate increase strengthened the US dollar and US Treasury yields, cutting demand for gold because it pays no interest.
  • Local factors amplified the slide: a firmer rupee lowered rupee‑priced bullion in India and Pakistan, and import duties and tax rules continue to shape retail prices there.
  • Silver and other precious metals also slipped, and traders are watching the Fed’s June meeting minutes and upcoming US economic data for the next directional cue.