ING strategists Warren Patterson and Ewa Manthey say Gold fell for a third straight session and week, losing over 2% as investors reassessed US-Iran negotiations and US monetary policy. They argue that easing energy supply fears and hawkish comments from Federal Reserve Chair Kevin Warsh have reduced Gold’s appeal, even as ongoing Middle East risks continue to offer some underlying support.

Geopolitics offset by rate headwinds

"Gold fell for a third consecutive session on Friday, posting a third straight weekly decline."

"The metal lost more than 2% over the week as investors weighed the outlook for US-Iran negotiations and US monetary policy."

"While geopolitical tensions in the Middle East remain elevated, the resumption of oil and LNG flows through the Strait of Hormuz has eased concerns over energy supply disruptions and reduced fears of a broader inflation shock."

"At the same time, hawkish comments from Federal Reserve Chair Kevin Warsh reinforced expectations that US interest rates will remain higher for longer."

"Gold is likely to remain sensitive to developments in the Middle East and shifts in Fed rate expectations."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)