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Gold slips toward monthly low as Fed hike bets strengthen the dollar
Gold faces pressure as US crude rises more than 10% on US Iran tensions, reviving energy driven inflation fears that keep Fed rate expectations higher.
Gold prices pulled back toward the lower end of the daily range after trading up to the $4,009 area earlier in the session, with FXStreet noting the metal remains vulnerable near its monthly trough.
The article links the pressure on non-yielding bullion to a stronger US dollar, driven by renewed expectations that the Federal Reserve will keep borrowing costs higher for longer.
Crude oil is cited as a key catalyst, with prices jumping more than 10% this week as renewed US Iran clashes stoked supply concerns and renewed inflation worries.
On the US data side, the US Labor Department said new unemployment benefit applications fell to a seasonally adjusted 208K for the week ended July 11, and the Philadelphia Fed Manufacturing Index rose from 10.3 to 41.4 in July, while FXStreet also references hawkish Fed commentary and uncertainty tied to inflation trends.
Latest closeGold $3,981.40 ▼1.6%|WTI crude $79.00 ▼0.8%