Gold drops below $4,200 as oil shock and Fed rate bets pressure prices

invezz.com (French) —

Gold prices fell sharply Monday, dropping below $4,200 per ounce as rising oil prices, a firmer dollar, and higher US bond yields fueled expectations that the Federal Reserve may continue tightening monetary policy. Spot gold declined 2.1% to $4,198.10 per ounce, putting it on track for its biggest daily drop since September 1. Brent crude rose above $106 per barrel after President Donald Trump rejected an Iranian proposal regarding the Strait of Hormuz, reinforcing inflation concerns that investors believe justify the Fed's restrictive stance. Analysts identify $4,200 as a key short-term support level, with $4,000 as the next target if weakness persists. US employment and inflation data due this week could determine the metal's direction. Despite the decline, gold ETFs attracted $18 billion in August, the second-largest monthly inflow on record.


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