Gold Under Pressure from Energy Shock, Geopolitics, Says WGC

Gold prices declined amid the turmoil, with the LBMA Gold Price PM falling 1.3% to $4,503/oz, trimming its year-to-date gain to 3%.

SEATTLE (Scrap Monster): Global financial markets faced heightened volatility last week as escalating Middle East tensions and rising energy prices intensified stagflation concerns. Early economic signals point to emerging fallout, said latest edition of Weekly Markets Monitor released by the World Gold Council (WGC).

Major global equities ended lower, bond markets sold off pushing yields higher, the U.S. dollar strengthened, and oil prices climbed. According to Deutsche Bank’s “Pressure Index,” market stress has surpassed levels that historically triggered policy responses, highlighting the sharp reaction in Treasury yields, equity markets, and inflation expectations.

Gold price bounces back above $5,000 despite Fed policy jitters

Gold prices declined amid the turmoil, with the LBMA Gold Price PM falling 1.3% to $4,503/oz, trimming its year-to-date gain to 3%. Rising inflation expectations and reduced prospects of Federal Reserve rate cuts weighed on bullion, while investors liquidated positions to cover broader market losses.

Despite the pullback, gold appears to be stabilizing near key technical support levels, supported by long-term fundamentals. Analysts note that prolonged economic weakness and labor market softness could reinforce stagflation risks—an environment where gold has historically performed strongly.