Gold slips 0.7% below $4,200 as oil swings cloud Fed outlook
Why it matters: Traders are watching this week’s US inflation data and a Thursday appearance by Fed Chair Kevin Warsh for clues on rates.
Gold retreated from a one-week high on Tuesday, with spot bullion falling 0.7% to $4,167.14 an ounce by midafternoon in New York as traders weighed volatile oil prices and the path of US interest rates. Brent crude rose to a two-week high after the collapse of a Russia-Ukraine energy ceasefire and fresh Houthi attacks in Saudi Arabia. Gold has fallen about 20% since the US-Iran war began in late February, as energy-supply disruptions fueled inflation and reinforced expectations for tighter monetary policy. Still, bullion has largely stayed above $4,000, supported by inflows into gold-backed ETFs and continued buying by the People’s Bank of China.