Why is Gold price crashing today? Check latest gold rate

Gold prices have dropped more than 13% since the U.S.-Israeli war with Iran erupted on February 28. Spot gold extended losses for a fourth consecutive session, ‌and was down ⁠2 per cent at $4,557.25 ⁠per ounce, its lowest since May 6. Bullion has lost 3.3 per cent so far this ​week. U.S. gold futures for June delivery lost 2.7 per cent to $4,561.30. Gold ​fell to a one-week low on Friday, as elevated oil prices stoked inflation fears, boosting expectations of higher interest rates and sending U.S. Treasury yields near one-year highs. Spot silver fell 6.4 per cent to $78.16 per ounce, platinum lost 2.7 per cent to $1,999.60, and palladium was down 0.7 per cent at $1,427.39.





"Gold is getting hit from all sides - rising oil has brought inflation back to the forefront, pushing yields higher and the dollar stronger, ​leaving the yellow metal as the unfortunate victim of the ⁠market's renewed ‌rate-cut scepticism," said Tim Waterer, chief market analyst at KCM Trade.




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The ​dollar has ​gained more than 1% so far this week, making greenback-priced bullion expensive ⁠for holders of other currencies. Brent crude oil prices were up 6.6% ​this week, hovering above $108 a barrel, as the Iran war drags ​on, keeping the key Strait of Hormuz largely shut.




A series of inflation reports this week showed the risk that rising energy costs could spill over to other goods and services, dimming hopes for near-term U.S. rate cuts.




Traders have largely priced out U.S. ‌interest rate cuts this year, with markets anticipating a 39% chance of a hike by December, according to CME Group's FedWatch tool.




While gold is ​seen as a ​hedge against inflation, high ⁠rates tend to weigh on the non-yielding asset.




On the geopolitical front, U.S. President Donald Trump departed China touting business deals that gave markets little to cheer, while Beijing warned Washington about ​mishandling Taiwan and said its war with Iran should never have started.