Shafaq News
Gold pricesswung between gains and losses on Wednesday, as concerns around inflation andhigher interest rates rose after fresh U.S. strikes on Iran lifted oil and thedollar ahead of the release of the Federal Reserve's June meeting minutes.
Spot gold rose0.5% to $4,125.59 per ounce by 0305 GMT, after dropping to its lowest sinceJuly 2 earlier in the day. U.S. gold futures for August delivery shed 0.5% to$4,136.30.
"Over the past 24 hours, there was a little bit of a scare again on the inflation front. So bonds came in lower, the dollar popped a little,gold pulled back, and now seems to be kind of stabilising after thatcorrection," said Ilya Spivak, head of global macro at Tastylive.
"At thispoint, we've been watching gold attempt to carve out a bottom."
The U.S.military unleashed a new wave of strikes against Iran on Tuesday and revoked alicence allowing the country to sell oil after three tankers were hit by projectilesin the Strait of Hormuz.
U.S. oil pricesjumped nearly 3% in early trade, U.S. Treasury yields advanced, while thedollar clung to its highest levels of the week against most of its peers as thestrikes against Iran put pressure on an already fragile ceasefire.
Markets haveincreased their bets for a September Federal Reserve rate hiketo an over 63% chance, up from about 57% on Tuesday, the CME FedWatch toolshowed. FEDWATCH/
Investors alsoawaited minutes of the Federal Open Market Committee's June 16-17 meeting, due later today, for fresh clues on the interestrate path under Fed Chair Kevin Warsh.
While gold isseen as an inflation hedge, high interest rates tend to weigh on the non-yielding asset.
Among othermetals, spot silver rose 0.8% to $60.47 per ounce, platinum slipped 0.3% to$1,635.45 and palladium dropped 0.6% to $1,268.64.
(REUTERS)
Only theheadline is edited by Shafaq News Agency.
