Shafaq News
Gold pricesfirmed on Tuesday, supported by softer oil prices following a fragileIsrael-Iran truce, while focus was also on inflation and interest rate hikerisks.
Spot gold wasup 0.4% at $4,345.71 per ounce, as of 0602 GMT. In the previous session,bullion touched its lowest point in more than two months.
U.S. goldfutures for August delivery were up 0.2% at $4,370.80.
"Theslight easing of tensions between Israel and Iran has tamed oil pricessomewhat and has, by extension, helped gold," said Tim Waterer, chiefmarket analyst at KCM Trade.
Iran and Israelsaid on Monday they had halted attacks on each other after an appeal from U.S.President Donald Trump, though Tehran warned it would resume hostilities ifIsrael continued to hit Hezbollah in Lebanon.
Oil priceseased, erasing most of Monday's gains.
Elevated crudeoil prices can accelerate inflation, and while gold is seen as a hedge againstinflation, higher interest rates tend to weigh on the non-yieldingmetal.
Goldman Sachssaid it expects the U.S. Federal Reserve to keep interest rates unchangedthrough 2026 and delay rate cuts until 2027, citing stronger economic activityand jobs growth.
Traders are nowpricing in a more than 70% chance of a U.S. rate hike by December, according to theCME FedWatch tool. FEDWATCH
Investors arebracing for May's U.S. consumer price index data, due on Wednesday, to gaugethe Fed's monetary policy path.
"A return to $5,500 for gold remains viable by year-end driven in part by centralbank demand, but it will likely require cooperation from oil prices, bondyields and the dollar, which would all need to take a turn lower,"Waterer said.
Spot silverrose 0.4% to $68.45 per ounce, platinum gained 0.3% to $1,759.74, and palladiumrose 1.5% to $1,223.44.
(REUTERS)
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