Gold Rebounds 1.1% to $4,015 but Heads for 3% Weekly Loss as Oil Surge Fuels Rate Fears
Updated
Updated · CNBC · Jul 17
Gold Rebounds 1.1% to $4,015 but Heads for 3% Weekly Loss as Oil Surge Fuels Rate Fears
3 articles · Updated · CNBC · Jul 17
Summary
Spot gold rose 1.1% to $4,015.09 an ounce on Friday after dipping below $4,000 earlier, with bargain hunting lifting prices from their lowest level since July 1.
That rebound did little to erase a 3% weekly drop—gold’s biggest in six weeks—as escalating U.S.-Iran clashes pushed oil up about 12% and revived inflation concerns.
Higher oil has strengthened the case for tighter U.S. policy, with Dallas Fed President Lorie Logan publicly calling for a rate hike and Vice Chair Philip Jefferson saying he could support one.
Traders now price a 73% chance of a December rate hike, a backdrop that pressures non-yielding gold even after softer June U.S. inflation data.
Physical demand also stayed muted: discounts in India widened to a one-month high as buyers waited for lower prices, while premiums in China were largely steady.