Gold slips after US attacks on Iran

Shafaq News

Gold fell on Tuesday as fresh U.S. attacks in Iran pushed oil prices higher, fuelling concerns around inflation and higher-for-longer interest rates.

Spot gold was down 0.9% at $4,529.50 per ounce, as of 0545 GMT. U.S. gold futures for June delivery gained 0.2% to $4,529.60.

Gold fell on Tuesday as fresh U.S. attacks in Iran pushed oil prices higher, fuelling concerns around inflation and higher-for-longer interest rates.

Spot gold was down 0.9% at $4,529.50 per ounce, as of 0545 GMT. U.S. gold futures for June delivery gained 0.2% to $4,529.60.

Brent crude futures rose 2% in Asian trade on Tuesday, as a deal to end the war and open ⁠up the Strait of Hormuz remained elusive.

Elevated crude oil prices can fuel inflation and keep interest rates higher for longer. While gold is seen as a hedge against inflation, higher ⁠rates tend to weigh on the non-yielding metal.

Markets are pricing in a U.S. Federal Reserve rate hike before year-end, with a 56% chance of a ⁠move by December, according to CME Group's FedWatch tool. 

Spot silver fell 2.1% to $76.45 per ounce, platinum lost 1% to $1,948.12, and palladium slid 1.4% to $1,378.89.

(Reuters)

Only the headline is edited by Shafaq News Agency.