Gold fell on Friday to around $4,150 per ounce, heading for a second consecutive weekly decline. The precious metal is notably hampered by the rise in oil prices, fueled by fears of an escalation in the conflict between the United States and Iran.
Gold is also under pressure from a firmer dollar and higher yields on U.S. Treasuries. Investors are also analyzing the latest statements from American Federal Reserve officials, as they await the monthly U.S. jobs report.
Meanwhile, oil prices continued their advance as Washington considers deploying an additional aircraft carrier and 10,000 troops to the Middle East. Such a decision could raise the risks of disruptions to energy supplies in the region and rekindle inflationary pressures.
Markets are now closely awaiting the release of the September U.S. employment report. Its results could weigh on expectations regarding the future evolution of the Fed’s monetary policy.
Neel Kashkari, president of the Minneapolis Federal Reserve, indicated that it remains difficult to determine how high interest rates will need to be raised to contain inflation. He stressed that the central bank must take the necessary measures to bring inflation back to its target.
