Gold declines as oil rises and inflation fears

Gold prices fell yesterday, affected by fears of rising inflation after renewed tension between the United States and Iran led to a rise in Brent crude prices and cast doubt on US interest rate expectations.

Gold in spot transactions fell 1.1% to $4,521.80 per ounce, while US gold futures contracts (June delivery) remained unchanged at $4,522.5.

Ricardo Evangelista, an analyst at the global brokerage firm Active Trades, said: “Uncertainty led to a rise in oil prices, which increased inflation fears and reinforced expectations of monetary tightening by the US Central Bank, and constituted an obstacle to gold, which does not generate a return.”