Spot Gold Nearly Erases All Gains for the Year

Odaily News On Monday, spot gold once fell to $4,320.30 per ounce—just over a dollar higher than its price at the end of last year, nearly erasing all gains for the year. Meanwhile, the war in the Middle East has entered its fourth week, with new threats of attacks exchanged between the United States and Iran. Since the conflict began, rising oil prices have increased inflation risks and reduced the likelihood of the Federal Reserve and other central banks cutting interest rates in the short term. This is a negative factor for gold, which has fallen for eight consecutive trading days and just recorded its largest weekly decline since 1983. Kyle Rodda, an analyst at Capital.com, stated that due to technical reasons, "gold is expected to rebound in the short term," which largely depends on "whether Trump can follow through on his threat to attack Iran's power plants." (Jin10)