Home›Commodities›Precious Metals›Gold holds near two-week high as US dollar slips on Ir…

Gold holds near two-week high as US dollar slips on Iran diplomacy hopes

Bullion steadied just below the two-week peak while Fed tightening odds stayed high, with CME FedWatch showing about an 88% chance of at least one rate hike this year.

Reported · Written up by our desk · Precious Metals

Gold prices held a bullish short-term tone into the European session, trading just below a two-week high set earlier this Wednesday, according to FXStreet.

The dollar eased after a four-day uptrend, with sentiment supported by hopes that US-Iran diplomacy could reduce pressure on energy prices and temper hawkish US Federal Reserve expectations, the outlet said.

FXStreet cited diplomacy signals from both sides, alongside ongoing military developments that raise regional conflict risks and could affect global energy supplies, including reported strikes and attacks involving Iran in the Gulf and the Strait of Hormuz.

With crude oil prices lifted to a fresh high since June 12, FXStreet noted concerns about energy-driven inflation and that CME Group’s FedWatch Tool shows traders pricing in roughly an 88% chance the Fed raises borrowing costs at least once by year end, a backdrop that OCBC said can cap gold’s upside until oil eases and real yields move down.

Latest closeGold $3,981.40 ▼1.6%|WTI crude $79.00 ▼0.8%

More like this

Sources