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Gold Weakens on Inflation Concerns, Rate Hike Expectations

Gold prices declined as persistent inflation concerns and stalled negotiations over the Strait of Hormuz kept markets pricing in additional central bank rate increases. The shipping corridor impasse sustained worries that energy costs will remain elevated, reinforcing expectations that the Federal Reserve and other major central banks will maintain higher interest rates longer. Silver fell to near two-week lows. Emerging-market assets suffered their worst week since March, with stocks and currencies tumbling on concerns that Middle East tensions will fuel global inflation. Investors assessed mixed signals on potential ceasefire negotiations while weighing supply disruption risks. The yield-sensitive precious metals market reflected growing conviction that rate-hiking cycles remain intact across major economies.