Gold Slips to Near Two-Week Low on Fed Rate Hike Bets and Oil-Driven Inflation Fears

Precious metals are facing headwinds from a combination of resurgent energy prices and hawkish signals from US monetary policymakers, pushing gold toward its weakest levels in nearly two weeks.

The surge in crude has amplified worries that persistent inflation will keep the Federal Reserve on a tighter path longer than previously anticipated, raising the opportunity cost of holding non-yielding assets like bullion.

Silver has mirrored some of the weakness, trading around $67 per ounce amid similar macro pressures. Miners such as South Africa's Harmony Gold have benefited from elevated prices earlier in the year but now face margin compression if the pullback deepens.

Portfolio managers are reassessing allocations between gold and inflation-protected securities, with technical support levels around $4,400 becoming critical. Broader implications extend to jewelry demand in Asia and central bank buying patterns, which have been a key support in recent years.

Traders should monitor upcoming US employment data, Treasury yield movements, and any follow-up statements from Fed officials for directional cues, while watching physical premiums in Shanghai and Mumbai for signs of renewed buying interest.