Gold Silver Rate Today Highlights: Gold prices ease as Middle East tensions fuel rate hike concerns

Gold prices are likely to remain sensitive to developments in the Middle East and upcoming US inflation data as markets assess the outlook for interest rates. Escalating tensions in the region have pushed crude oil prices higher, raising concerns that increased energy costs could feed into broader inflation. Brent crude prices rose for a fourth straight session, adding to pressure on the Federal Reserve to maintain elevated interest rates if inflationary pressures persist.

The CME FedWatch Tool shows that a majority of traders expect the Federal Reserve to raise interest rates at its upcoming policy meeting. This has weighed on gold, which does not pay interest and tends to become less attractive when borrowing costs and yields rise. Spot gold was down 0.1% at $4,349.44 per ounce, while US gold futures for December delivery fell 1% to $4,393.30.

The immediate focus is now on US producer price index data due Thursday and consumer price index data due Friday. The readings could provide further clues about inflation and the Federal Reserve’s next policy moves. Other precious metals were mixed, with silver and palladium lower while platinum gained.

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