War in Iran lowers gold prices as inflation fears drive rate hike expectations
Spot gold has declined more than 10% since the U.S.-Israeli war on Iran began on February 28. This decline is driven by inflation concerns fueled by higher energy prices. Federal Reserve policymakers, according to minutes from the March 17 to 18 meeting, felt rate hikes could be needed to counter inflation that continued to exceed the central bank's 2% target. Non-yielding gold tends to do well in low-interest-rate environments. The price of spot gold was $4,713.79 per ounce as of 0311 GMT Thursday.
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