Gold Pressured by Hawkish Fed Outlook

Gold prices fell to a more than one-year low as persistent US inflation concerns fueled expectations for more aggressive Federal Reserve interest rate hikes. New York Fed President John Williams reinforced this sentiment by stating that inflation remains too elevated, strengthening the case for further monetary tightening. The prospect of higher rates and a stronger dollar continues to act as a significant headwind for the non-yielding precious metal.

US Dollar Strengthens Across the Board

The US Dollar gained broadly against a basket of major currencies, with the Euro, British Pound, and Japanese Yen trading near multi-week or historic lows. This dollar rally is underpinned by analyst views that strong US growth, a tight labor market, and stubborn inflation will support the Federal Reserve's tightening cycle into year-end. The currency's strength has prompted Japanese officials to note their observation of recent rapid, one-sided foreign exchange shifts.

Oil Prices Weaken on Inventory Build

Crude oil prices were poised for a weekly decline after a reported jump in US inventories signaled weaker demand and weighed on the market. West Texas Intermediate (WTI) lost momentum as data pointed to growing domestic stockpiles. The market also continued to monitor geopolitical developments, including US diplomatic policy concerning Iran.

Mining Sector Sees Expansion into Pakistan

In broader commodity-related news, Canadian miner Ivanhoe Atlantic announced its entry into South Asia by targeting copper resources in Pakistan. The company outlined plans for a new partnership with Mari Energies as part of its expansion into the region.