Gold Prices Hit Two-Month Low Amid Geopolitical Tensions and Fed Rate Outlook

Gold prices fell to their lowest level in nearly two months on Thursday, pressured by a strengthening dollar and rising global oil prices. The decline follows heightened regional instability after the U.S. military conducted airstrikes against a base in the Strait of Hormuz, citing threats to American forces and maritime traffic. Federal Reserve official Alyssa Cook signaled that the central bank may consider raising interest rates if inflationary pressures persist. Cook identified potential drivers of these pressures as new tariff policies, the ongoing conflict involving Iran, and sustained capital investment in artificial intelligence. The broader precious metals market mirrored gold’s downward trend, with silver, platinum, and palladium also recording losses. Market sentiment remains cautious as investors weigh the impact of U.S. military actions in the Middle East against the prospect of a more hawkish monetary policy.