Shafaq News
Gold rose to a two-week high on Wednesday on technicalbuying as investors assessed the widening Middle East conflict and awaited theU.S. Federal Reserve meeting next week for clues on the interest rate outlook.
Spot gold climbed 0.9% to $4,112.70 per ounce by 0705 GMT,having hit its highest level since July 7 earlier in the day. U.S. gold futuresfor August deliveryjumped 1% to $4,116.90.
Escalating tensions in the Middle East have lifted oilprices and stoked inflation concerns, strengthening expectations of interestrate hikes that led gold to its steepest weekly drop since early June lastweek.
"Buyers have been stepping in seeking a value playafter the recent pullback, while hopes for diplomatic progress between the U.S.and Iran are also assisting price moves," said Tim Waterer, chief marketanalyst at KCM Trade.
U.S. Secretary of State Marco Rubio said on Wednesday thatWashington is still willingto negotiate an end to the Iran crisis but Tehran is not serious about talks.
Three oil tankers carrying Saudi crude to Asia reversedcourse in the Red Sea on Tuesday after threats from Yemen's Iran-alignedHouthis, raising concerns about energy supply.
The Fed will keep its key interestrate steady for the rest of 2026, according to a Reuters poll, although amajority of those who answered a separate question about the chance of a hikethis year described the likelihoodas "high", a reversal from last month when most saw it as"low".
Higher-for-longer interest rates increase the opportunitycost of holding non-yielding bullion.
Among other metals, spot silver was up 0.7% at $59.18 per ounce after reaching itshighest point since July 10 earlier in the day.
Platinum climbed 1.2% to $1,649.03 and palladium rose 1.5%to $1,300.58.
(Reuters)
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