Gold Edges Lower As Brent Returns To $110

(RTTNews) - Gold prices traded lower on Tuesday as rising oil prices rekindled inflation and interest-rate concerns.

Spot gold dropped half a percent to $4,120 an ounce while U.S. gold futures were down half a percent at $4,138.22 as investors assess the probabilities of changes to the Fed rate.

The U.S. dollar consolidated recent gains in quiet trading as investors fret over rising debt levels in Europe and tightening financial conditions.

Widespread protests and unrest in countries like France and Italy driven by rising fuel costs, reduced public services and housing issues also prompted investors to adopt a more cautious stance.

Multiple French cities have announced curfews after riots and looting left around 3000 businesses damaged. French President Emmanuel Macron is facing scrutiny over security failures ahead of next year's presidential election.

In Italy, the government said it would dispatch 500 army troops to "defend Milan" following two days of unrest.

European Central Bank President Christine Lagarde warned that rising bond yields, reflecting concerns about government debt, could weigh on economic growth and inflation.

The IMF said it expects Asia-Pacific economic growth to slow to 4.4 percent in 2027 from 4.8 percent in 2026 and 5 percent in 2025 due to higher energy prices, rising global bond yields and uncertainty regarding AI demand.

Brent crude prices topped $110 a barrel due to Houthi attacks on Saudi Arabia infrastructure and reports of vessel attacks in the Gulf.

Iran is attacking ships more frequently than at any point in the war to assert control over the Strait of Hormuz. Saudi Arabia postponed its flagship FII conference after Houthis claimed fresh attacks across the kingdom. Elsewhere, Russia and Ukraine have resumed attacks on energy infrastructure.

U.S. Energy Secretary Chris Wright said Gulf oil flows had recovered to about 80 percent of pre-conflict levels, although refined-product deliveries remained heavily constrained amid a global refining crisis compounded by Ukraine's persistent attacks on Russian refineries.

The Trump administration is allowing investors to buy and refit sanctioned oil takers for legal oil shipments, with the global "dark fleet" estimated at around 1,600 vessels.

Meanwhile, China left its benchmark lending rates unchanged for the 17th straight month earlier today, in line with market expectations.