Gold: How is energy-driven inflation weighing on prices? – ING

Gold found no support from the equity sell-off or declining US Treasury yields, with spot prices falling 2.8% to approach $4,000/oz, according to ING analysts Warren Patterson and Ewa Manthey. In their view, higher Oil prices and the resulting inflation risks are driving the Gold market’s focus. With US inflation still above the 2% target, these pressures could strengthen the case for tighter central bank policy.

How Are Higher Energy Prices Undermining Gold?

"Gold prices failed to benefit from yesterday's equity sell-off and the significant fall in US Treasury yields, with the 10-year yield falling back below 5%. Instead, gold prices came under pressure."

"Spot prices fell 2.8% and are nearing $4,000/oz."

"The gold market appears more focused on higher oil prices and what it could mean for inflation — and ultimately central bank policy."

"With US inflation still above the central bank’s 2% target, higher energy prices could intensify price pressures and strengthen the case for tighter monetary policy."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)