Gold prices slipped to around $4,150 an ounce on Friday and were on track for a second straight weekly decline, weighed down by rising oil prices amid concerns that the US-Iran conflict could escalate. The metal also came under pressure from a stronger US dollar and higher Treasury yields, as investors digested recent commentary from Federal Reserve officials and awaited a key US employment report.
Oil prices climbed after reports that the United States is considering sending an additional aircraft carrier and 10,000 troops to the Middle East, heightening the risk of further disruptions to regional energy supplies and renewed inflationary pressures. At the same time, investors turned their attention to the September US jobs report, which could shape expectations for the Fed’s future policy decisions.
On Thursday, Fed Vice Chair Philip Jefferson said policymakers may need more time to assess whether additional interest rate increases are necessary. Futures markets currently imply roughly a 75% probability that the Fed will keep rates unchanged at its upcoming meeting.
