Branch² Intelligence
Gold heads for weekly drop as Gulf attacks reinforce rate-hike bets
Key takeaway
Gold heads for weekly drop >1% as Gulf attacks reinforce rate hike bets.
- Step 1Gulf attacks reinforce Fed rate hike expectations, pushing US real yields higher.
- Step 2Higher US real yields strengthen the USD and raise the opportunity cost of gold, driving gold prices down.
- Step 3UK gilt yields track US Treasury yields higher, increasing SME financing costs and delaying BoE rate cuts.
Source: IN:The Hindu BusinessLine
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