Gold Price Surpasses $4,100 Amid Easing Inflation Concerns

Bloomberg – Gold rose after a halt in fighting between the United States and Iran over the weekend eased concerns about oil supply disruptions and inflationary pressures.

The precious metal climbed as much as 1.6%, surpassing $4,100 per ounce in trading, after gaining nearly 1% the previous week.

Gold has largely hovered around the $4,000-per-ounce level since late June, supported by waves of buying on dips that kept the precious metal above a psychological barrier that some traders view as a key support level.

The precious metal has fallen by more than one-fifth since the United States and Israel launched strikes on Iran in late February, helping to end a multi-year rally that had previously pushed gold to a record near $5,600 per ounce the prior month.

Following a temporary ceasefire last month, renewed fighting in the Middle East has fueled inflationary pressures in recent weeks, increasing the likelihood that the Federal Reserve will raise interest rates, creating headwinds for gold, which yields no return.

Fed watchers expect this week’s interest rate decision to be contentious, given the recent rise in energy costs conflicting with a lower-than-expected reading in consumer prices for June.