Gold sinks to 6-month low as Fed hike fears outweigh Iran war
What's new: Traders now price a 67% chance of a US rate hike by December as oil-driven inflation clouds the outlook.
Gold fell to its lowest level in more than six months on Thursday, with investors pulling back even as the Iran war pushed oil prices higher and stoked inflation worries. Spot gold traded near $4,063.87 an ounce in Singapore after touching its weakest level since Nov. 21, while August futures slid as low as $4,046.20. Analysts said bullion is under pressure because stronger US inflation and labor data have shifted expectations toward higher-for-longer interest rates. CNBC reported traders are pricing a 67% chance of a Federal Reserve rate increase by December. The move came after fresh US strikes on Iran and Iran's closure of the Strait of Hormuz sent crude prices up more than $2.