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Gold Slips to Three-week Low as Middle East War Muddles Rate Outlook
Shares of Precious Metals Companies Are Trading Lower Amid Declines for Both Gold and Silver and Gains for the Dollar. Also, Higher Energy Prices May Limit Bets for Central Bank Easing, Which Limits Gold's Appeal as an Inflation Hedge.
Wheaton Precious Metals CEO Remains Bullish on Gold Long-term
The core PCE in the U.S. hit a near two-year high in January, while the Q4 real GDP was revised down sharply.
Core inflation in the United States has risen month-over-month for two consecutive months, while economic growth in the fourth quarter was drastically revised downward. Amid a dual impact of surging oil prices triggered by Iran-related tensions and weak consumer spending, the Federal Reserve's rate-cutting playbook has been completely disrupted.
Why does gold remain 'unshaken' amid the turmoil in the Middle East?
In the recent escalating conflict involving the US, Israel, and Iran, gold, the top safe-haven asset, has shown unusual 'calmness' and even faced a wave of sell-offs at one point. Why has the geopolitical turmoil failed to ignite the price of gold?
Gold Continues Lackluster Showing Since Start of Iran War While Oil Keeps Climbing