BIG DROP IN GOLD PRICE! This is the main reason

BIG DROP IN GOLD PRICE! This is the main reason The price of gold fell by two percent yesterday, heading for its largest weekly decline since 1983. This drop is attributed to escalating Middle East tensions increasing energy prices and diminishing hopes for interest rate cuts, coupled with a potential rate hike by the Federal Reserve due to inflation fears. Gold has been losing value weekly since attacks on Iran, influenced by rising bond yields, a stronger dollar, and profit-taking by investors.

• Gold price fell two percent to around $4,570 per ounce.
• On track for the largest weekly drop since 1983.
• Middle East tensions increased energy prices and reduced hopes for interest rate cuts.
• Report of Pentagon deploying warships and marines led traders to price in a 50% chance of a Fed rate hike by October.
• Concerns about sustained inflation are driving the market.
• Gold has seen weekly declines since US-Israeli attacks on Iran last month.
• Factors contributing to the decline include rising government bond yields, a stronger dollar, and profit-taking.
• Central banks, including the Fed, ECB, BoE, and BoJ, have kept rates steady but signaled willingness to tighten policy further if inflation persists.