Gulf Ministers to Meet Iran in Oman Over Hormuz Shipping Deal 
Asian Currencies Subdued as Yen Weakens Ahead of Fed, BOJ Decisions 
Asian Tech Stocks Slide as AI Concerns and Rising Bond Yields Hit Chipmakers 
Japan Producer Inflation Eases to 7.6% in August 
Oil Prices Surge as Middle East Shipping Attacks Threaten Supply 
Treasury Buyback Fails to Cool Long-Term Yields 
Fitch Eyes Japan Budget for Fiscal Discipline 
UK Economy Grows 0.4% in July, Beating Forecasts 
Goldman Sachs Forecasts Fed Rate Hike as Inflation Risks Rise 
Oil Prices Surge as Houthi Attacks Deepen Hormuz Supply Fears 
German Inflation Accelerates to 2.9% in August 
EUR/USD Eyes 1.17 as Fed Decision Could Weigh on Dollar 
U.S. Stock Futures Steady as Oil Tops $100 Ahead of Inflation Data 
BOJ Set to Raise Rates to 1.25% as Inflation Risks Build 
Norway Core Inflation Rises to 3% in August 
Asian Stocks Slide as Oil Surge Fuels Rate Hike Fears 
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Gold prices moved lower on Monday as stronger-than-expected U.S. inflation increased expectations for a Federal Reserve interest rate hike this week, while surging oil prices added fresh inflation concerns.
Spot gold traded near $4,340 an ounce after recording its third consecutive weekly decline. Bullion lost 1.8% last week despite finishing Friday higher. XAU/USD fell 0.3% to $4,335.98 an ounce, while gold futures dropped 0.7% to $4,376.92.
Other precious metals also weakened. Silver declined 0.7% to $64.09 an ounce, while platinum slipped 0.3% to $1,792.63. The U.S. Dollar Index edged 0.1% higher to 99.19.
Pressure on gold intensified after August data showed core U.S. consumer prices, excluding food and energy, increased 0.3% month over month. Markets are now pricing an approximately 88% probability of a September Fed rate hike, which would be the central bank’s first increase in three years.
Higher interest rates generally create headwinds for gold because the precious metal offers no yield. President Donald Trump, meanwhile, renewed his calls for lower borrowing costs on Sunday, potentially adding political pressure ahead of the Fed decision.
Energy prices are also complicating the inflation outlook. Brent crude approached $107 per barrel after gaining nearly 9% last week as Middle East tensions continued disrupting energy markets. A planned meeting between Iran and several Gulf countries over a temporary shipping route through the Strait of Hormuz was postponed.
Despite near-term rate risks, ANZ remains bullish on the longer-term gold outlook. The bank expects geopolitical tensions and higher energy costs to keep inflation elevated and forecasts three 25-basis-point Fed rate hikes by March 2027.
ANZ maintained its 12-month gold price target of $5,400 an ounce, arguing that geopolitical-driven inflation should preserve demand for gold as a safe-haven asset. Recovering gold ETF holdings, stronger speculative positioning and robust institutional demand from China and India are also expected to provide support.
