Gold Drops 6%. Why It Is Losing Out to Higher Oil Prices and Interest Rates.
The price of gold tumbled on Thursday as flaring tensions in the Middle East drove oil prices higher and dimmed the prospects of a near-term rate cut by the Federal Reserve. Silver futures fared even worse, falling 8.2% to $71.22 on Thursday. Elsewhere, Brent crude futures the international benchmark, settled up 1.2% at $108.65 after Iran struck key energy infrastructure across the Middle East overnight.
The price of gold tumbled on Thursday as flaring tensions in the Middle East drove oil prices higher and dimmed the prospects of a near-term rate cut by the Federal Reserve. Silver futures fared even worse, falling 8.2% to $71.22 on Thursday. Elsewhere, Brent crude futures the international benchmark, settled up 1.2% at $108.65 after Iran struck key energy infrastructure across the Middle East overnight.