Precious Metals Preview: COMEX gold extends downside as elevated oil prices renew case for Federal rate hike

COMEX gold extends downside on Tuesday morning in Asia as rising oil prices intensified inflation concerns and strengthened expectations for a Federal Reserve rate hike. The better-than-expected US Nonfarm Payrolls (NFP) report also revived bets for a September interest rate hike by the US Federal Reserve (Fed) amid inflation risks stemming from persistently higher energy prices. Nevertheless, BoJ inspired rally in the Japanese Yen (JPY) keeps the US Dollar (USD) depressed near its lowest level in over two weeks, which, in turn, is seen benefiting the yellow metal. Currently, gold futures are trading lower by around half a percent at $4421.60 an ounce. Silver is also down marginally at $66.93 per ounce.

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