Gold Price Drop Deepens as Fed Holds Rates and Iran War Fuels Inflation Fear
Gold dropped for the third session in a row on Wednesday, sliding to its lowest level in a month as focus turned from safe-haven flows to the potential inflation and interest rate impact of the Iran war. By late morning in New York, spot gold slipped 1% to $4,550.39 an ounce. U.S. gold futures tracked the move, also down 1%, last trading at $4,563.30. This matters: the war’s influence on bullion is running both directions now. Gold tends to attract buyers when markets get rattled, but it doesn’t offer interest. So, when oil-fueled inflation lifts Treasury yields and pushes rate cuts further out of reach, gold feels the heat.