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Gold holds above $4,000 as Middle East tension boosts inflation fears
Spot gold was up 0.3% to $4,063.4 per ounce in London, while markets priced about a 34% chance of a Fed rate lift next week.
Gold prices edged higher and remained above $4,000 per troy ounce as traders weighed risks from a widening Middle East conflict and how it could affect the Federal Reserve’s rate path, LiveMint Markets reports.
The article attributes gold’s resilience to inflationary pressures linked to renewed US and Iran hostilities, including energy price support, alongside signs of a resilient US labor market that raise the likelihood of interest-rate hikes. It notes that higher borrowing costs can weigh on bullion, which does not pay yield.
Options and swap pricing pointed to roughly a 34% chance the Fed will raise rates at its next meeting, with at least one hike priced in by year end, the outlet adds. Analysts at Commerzbank also said the upcoming US Federal Reserve meeting is unlikely to move gold much given the backdrop.
The piece also flags a separate macro pressure point, saying the US will collect 10% to 12.5% duties on imports from most major trading partners over forced-labor allegations. In addition to gold, silver rose 1.6% to $58.5 per ounce, while platinum gained 0.6% and palladium was steady.
Latest closeGold $4,055.70 ▲0.2%|Silver $58.49 ▲1.2%|Platinum $1,599.10 ▲0.0%