Shafaq News
Gold pricesslipped on Wednesday, as renewed hostilities in the Middle East pushed crudehigher and stalled U.S.-Iran talks, while investors awaited upcoming U.S.economic data.
Spot gold fell0.5% to $4,460.36 per ounce by 0702 GMT, after rising more than 1% in theprevious session. U.S. gold futures for August delivery slipped 0.7% to$4,488.90.
Gulfhostilities flared anew, with the U.S. military saying Iranian missile attacks on Bahrain, Kuwait and other regional targetswere either thwarted or failed.
U.S. Secretaryof State Marco Rubio said on Tuesday that President Donald Trump's negotiatingteam has not offered Iran sanctions relief in exchange for reopening the Straitof Hormuz and insisted that any sanctions relief was tied to Tehran giving up itsnuclear programme.
"Themarket is now looking at the possibility that this ceasefire with Iran may nothold even though Trump is going to push for a peace deal resolution," said Kelvin Wong, a senior market analyst at OANDA.
"If westart to see further escalation, that could also dampen whatever recovery thatgold might have had."
Oil prices rosemore than 1%, deepening concerns over inflation and interest rate hikes.
ClevelandFederal Reserve President Beth Hammack said on Tuesday the U.S. central bank may need to raiseinterest rates soon should already-high inflation pressures continue to mount.
Investors arenow awaiting the U.S. nonfarm payroll data, due later in the day, and employment report due on Friday to gauge the Fed's monetary policypath.
Although goldis typically viewed as a hedge against inflation, it tends to lose its appeal as a non-yielding asset in a high interest-rate environment.
Spot silverfell 1.1% to $74.27 per ounce, platinum lost 0.5% to $1,928, and palladium fell0.6% to $1,361.75.
(REUTERS)
Only theheadline is edited by Shafaq News.
