Tim Waterer notes gold prices are rising slightly despite significant weekly losses caused by Middle East tensions and inflation concerns.
Gold prices saw a slight recovery on Friday as bargain hunters moved in after the metal dipped below the $4,000 mark. Tim Waterer, chief market analyst at KCM Trade, noted that while gold is making tentative steps higher, geopolitical risks in the Middle East remain a dominant force. The metal has experienced a 3% decline this week, marking its largest drop since June 1. This downward trend is driven by escalating U.S.-Iran clashes, which have pushed oil prices up by 12% and reignited concerns regarding inflation. Because gold does not yield interest, it faces pressure in a high-interest-rate environment. Market analysts are closely watching the Federal Reserve as officials signal potential moves. Dallas Federal Reserve President Lorie Logan became the first of the new colleagues to publicly call for a rate hike, while Fed Vice Chair Philip Jefferson expressed openness to raising rates if inflation does not improve soon. Traders currently estimate a 73% chance of a rate hike in December.