Shafaq News
Gold pricesrose more than 1% on Tuesday as investors weighed diplomatic efforts to easethe U.S.-Iran conflict, which could temper oil-driven inflation risks andinfluence the U.S. Federal Reserve's interest rate path.
Spot gold rose1.2% to $4,054.24 per ounce as of 0529 GMT. U.S. gold futures for Augustdelivery were up 1.1% at $4,059.10.
"It lookslike gold is trying to find a base somewhere around this ($4,000) level and is going to try to re-engage the upside fromthere," said Ilya Spivak, head of global macro at Tastylive.
"Theseheadlines from the Middle East seem to have some degree of knock-on, though itis increasingly only being paid attention to in a passing kind of way."
Oil pricessoftened on Tuesday, with markets weighing reports of mediation effortsbetween the U.S. and Iran against an exchange of fresh attacks between the twoand threats of a naval blockade of Saudi Arabia by Yemen's Houthis.
A senior Iranianofficial told Reuters on Monday that Tehran had received a proposal frommediators for a 10-day ceasefire in efforts to salvage the interim deal,intended to pave the way to a lasting agreement to end the war.
The recentescalation in the conflict drove oil prices to more than a one-month high on Monday, with a growing chorus of U.S. policymakersarguing interest rates may need to rise to beat back persistent inflation.
High interestrates increase the opportunity cost of holding non-yielding bullion.
While the Federal Reserve is widely expected to keep interest rates unchangedat next week's meeting, traders are currently pricing a 64% chance of a ratehike in September, according to the CME FedWatch Tool. FEDWATCH
Spot silvergained 2.8% to $57.99 per ounce, platinum was up 1% at $1,610.06 and palladiumrose 1.2% to $1,267.68.
(Reuters)
Only the headlineis edited by Shafaq News.
