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Gold slips below $4,000 as US-Iran tensions and CPI focus grow
Spot gold was near $3,995 early Tuesday, with traders watching June US CPI and Fed Chair Kevin Warsh testimony for rate expectations.
Gold prices fell below the $4,000 level in early Asian trading Tuesday, extending selling pressure with spot gold around $3,995, as renewed US-Iran tensions stoked macro concerns.
FXStreet said the move follows a report that President Donald Trump reinstated a blockade of Iranian ships transiting the Strait of Hormuz and sought a 20% reimbursement on other cargoes, a step that could raise expectations for further attacks in the waterway.
Traders are also focused on the release of the US June Consumer Price Index report and on Federal Reserve Chair Kevin Warsh testifying later in the day, with expectations calling for headline CPI to decline 0.1% month over month and core CPI to rise 0.3% in June.
FXStreet noted that gold tends to be less attractive when interest rates are higher because it does not yield, and said a softer CPI outcome could weigh on the US dollar and provide near term support for the dollar denominated commodity price.
Latest closeGold $4,011.00 ▼2.3%