Gold fell on Thursday as fresh U.S. attacks on Iran pushed oil prices higher, stoking concerns about rising inflation and clouding the interest rate outlook.
FUNDAMENTALS
- Spot gold was down 0.8 percent at US$4,419.60 per ounce, as of 0129 GMT. U.S. gold futures for June delivery fell 0.7 percent to US$4,417.10.
- The U.S. dollar rose, making greenback-priced bullion more expensive for holders of other currencies.
- The U.S. military carried out new strikes in Iran targeting a military site that officials believed posed a threat to U.S. forces and commercial shipping in the Strait of Hormuz, a U.S. official said. This came hours after President Donald Trump dismissed an Iranian report of a deal to restore traffic through the strategic waterway.
- Oil prices rose about 2 percent in early Asian trade on Thursday as tensions between the U.S. and Iran persisted.
- Federal Reserve Governor Lisa Cook said on Wednesday that she believes the U.S. central bank should hold short-term interest rates steady for now. However, with tariffs, the Iran war, and a surge in AI-related investment pushing prices higher, she is prepared to hike rates if needed.
- Federal Reserve Vice Chair Philip Jefferson said on Wednesday that the current setting of monetary policy is appropriate amid ongoing upside risks to the inflation outlook.
- Investors await the release of U.S. Personal Consumption Expenditures (PCE) data, due later in the day, for further clues on the Fed’s monetary policy path.
- The Hong Kong Futures Exchange announced on Wednesday that it would introduce a market-wide trading fee discount and incentive programmes for gold futures to boost liquidity and revitalise the contract.
- Spot silver fell 1.7 percent to US$73.34 per ounce, platinum lost 0.5 percent to US$1,909.15, and palladium slid 0.7 percent to US$1,381.64.
Reuters
