International Spot Gold Analysis: If Oil Prices Continue Their Upward Trajectory, Gold Prices Will Face Continued Headwinds

On Thursday, gold prices struggled below the $5,200 mark. Despite escalating Middle East conflicts, rising U.S. Treasury yields and a stronger dollar have exerted downward pressure on gold prices. The war between the United States and Iran shows no signs of abating, with Tehran intensifying attacks on vessels and tankers in Iraqi waters and near the critical Strait of Hormuz. Even after the U.S. and International Energy Agency announced the release of emergency oil reserves to alleviate supply concerns and moderate energy prices that have surged due to Middle East conflicts, oil prices have resumed their upward trajectory amid fears of supply disruptions.
Higher inflation expectations have fueled market bets that the Federal Reserve may maintain interest rates unchanged for an extended period this year, supporting U.S. Treasury yields and the dollar, while non-yielding assets like gold have suffered as a result. Despite the U.S. February Consumer Price Index data released on Wednesday meeting expectations, market expectations for a hawkish Federal Reserve stance remain unchanged. It is worth noting that this inflation report does not account for the impact of oil shocks related to the Iran war, which has already shaken market prospects.
However, due to gold's inherent characteristics as a traditional store of value during periods of global uncertainty and market turbulence, gold prices have successfully attracted buying interest at lower levels.
Looking ahead, if oil prices continue their upward trajectory, the latest developments regarding the Iran war and market expectations for a hawkish Federal Reserve will continue to weigh on gold prices. #伊朗明确达成停火协议要求 $XAUUSD