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Gold prices decline as hopes for easing inflation fade

Gold prices decline as hopes for easing inflation fade

Gold prices decreased today due to escalating tensions in the Middle East, as the intensification of the conflict between the United States and Iran has raised concerns over the Federal Reserve potentially raising interest rates this year. Gold declined by 0.8%, reaching $4,029.29 per ounce, while August gold futures fell by 0.4% to $4,034.40. Meanwhile, oil prices increased by 11% this week, fueling inflation fears and the possibility of continued interest rate hikes. Despite inflation easing in June, markets still assign a 73% probability of a rate hike in December, with Fed officials' statements indicating a potential move if inflation does not begin to slow down.

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