Gold falls 3.5% weekly on higher-for-longer rate fears
Shafaq News
Gold prices fell on Friday and were on track for a weekly drop, as elevated oil prices fuelled fears of inflation and higher-for-longer interest rates amid stalled U.S.-Iran peace talks.
Spot gold was down 0.7% at $4,661.33 per ounce, as of 0426 GMT. The metal is down 3.5% so far this week after a four-week winning run.
U.S. gold futures for June delivery fell 1% to $4,676.50.
Brent crude prices have risen over 17% so far this week to hover above $105 a barrel, as the key Strait of Hormuz remained largely closed despite an extension of the Iranceasefire.
"Gold is still being trapped in this sideways range, between the 50-day moving average at around $4,900 and at the bottom, the 20-day moving average at $4,645 level," Wong said, adding that "everything now boils down to what's going on in the Middle East."
Iran flaunted its tightenedgripover the strait on Thursday with a video of commandos in a speedboat storming a huge cargo ship, after the collapse of peace talks that Washington had hoped would open one of the world's most important shipping corridors.
Trump told reporters that he believed Tehran wanted to make a deal but that its leadership was in turmoil. He said he was in no hurry for a deal, but if Iran did not want one, "I'll finish it up militarily."
The U.S. dollar is up 0.8% so far this week, making greenback-priced bullion more expensive for other currency holders.
The benchmark 10-year U.S. Treasury yields have gained over 2% this week, increasing the opportunity cost of holding non-yielding bullion.
Spot silver fell 1% to $74.69 per ounce, platinum lost 1.1% to $1,984.60, while palladium was down 0.3% at $1,464.02.
(Reuters)
Only the headline is edited by Shafaq News staff.
