Gold Wavers as High Energy Prices Threaten Fed Rate Path

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losses. Elevated crude prices from the US-Israel war with Iran have put the metal under pressure, raising the prospect of fewer Federal Reserve interest rate cuts. Crude fell in choppy trading, with Brent settling around $100 a barrel.Most Read from BloombergTwo LPG Ships Sail Through Hormuz to Shortage-Hit IndiaSecond Dynacom Oil Tanker Passes Hormuz as Other Owners Hold BackModi Walks Fine Line Between Iran and US as War Hits EconomyUS, Iran Keep Up Strikes as Trump Mulls Possibility of DealPakistan Oil Tanker Transits Hormuz After Hugging Iran CoastUncertainty over how long the war will last has made it difficult for traders to assess the impact on markets and the wider economy. A top aide to US President Donald Trump said the conflict could last four to six weeks, while both sides have given mixed signals.Over the weekend, Iran launched fresh attacks across the Persian Gulf, disrupting shipments at a key United Arab Emirates oil hub and denying US President Donald Trump’s assertion that it’s seeking ceasefire talks. Shipping remains near a standstill in the Strait of Hormuz, the strategic waterway through which a fifth of the world’s oil and liquefied natural gas typically moves.As the war drags on, prospects for an interest-rate cut have dwindled. Traders now see virtually no chance of a rate cut at this week’s Fed meeting. Higher borrowing costs typically weigh on precious metals, which don’t pay interest.The war has also boosted the dollar at the expense of gold. Though slightly down Monday, the greenback has risen about 2% since the US and Israel first struck Iran.“The dollar has been the ultimate safe haven during this conflict,” said Daniel Ghali, senior commodity strategist at Toronto Dominion Bank. “That is detrimental to gold since over the last year, gold has been the ultimate safe haven.”Though upward momentum has stalled, the yellow metal has still gained more than 15% this year. Concerns over stagflation — a combination of slower growth and high inflation — may push investors toward gold as a better store of value over the longer term.“Gold is more of a hedge against the wider impact of conflicts, rather than direct wartime threats,”UBS Global Wealth Management wrote in a note Monday. While higher energy prices and inflation have weighed on the metal, “gold primarily insulates against monetary risks like currency devaluation, rising deficits, and economic slowdowns, which can result from geopolitical conflicts,” the analysts wrote.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersSWMR Swarmer, Inc Common Stock 31.00 +26.00 (+520.00%)MU Micron Technology, Inc. 461.69 +19.89 (+4.50%)TTD The Trade Desk, Inc. 25.07 -2.01 (-7.42%)RKLB Rocket Lab Corporation 78.59 +7.28 (+10.21%)LULU lululemon athletica inc. 159.27 -0.64 (-0.40%)PortfolioSign in to access your portfolioSign inTop gainersTSAT Telesat Corporation 42.34 +6.84 (+19.27%)ESLT Elbit Systems Ltd. 1,014.33 +139.83 (+15.99%)LMND Lemonade, Inc. 66.87 +9.13 (+15.81%)BTDR Bitdeer Technologies Group 9.25 +1.05 (+12.80%)SEI Solaris Energy Infrastructure, Inc. 63.19 +6.20 (+10.88%)Top losersTME Tencent Music Entertainment Group 11.37 -3.72 (-24.65%)ASO Academy Sports and Outdoors, Inc. 49.90 -6.61 (-11.70%)SMTC Semtech Corporation 79.21 -9.79 (-11.00%)CRDO Credo Technology Group Holding Ltd 104.06 -12.82 (-10.97%)FRPT Freshpet, Inc. 67.42 -7.95 (-10.55%)Most activeSOFI SoFi Technologies, Inc. 17.37 -0.26 (-1.47%)NVDA NVIDIA Corporation 181.93 -1.26 (-0.69%)ONDS Ondas Inc. 11.28 +0.75 (+7.12%)AAL American Airlines Group Inc. 10.86 +0.37 (+3.53%)INTC Intel Corporation 44.06 -1.70 (-3.72%)Top economic eventsEarnings eventsMy earnings eventsEarnings events