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Gold steadies after Iran-Hormuz oil fears fade somewhat
Spot gold was little changed at $4,244.29 per ounce by 2:50 p.m. EDT after earlier climbing to its highest level since June 18.
Gold traded steady on Thursday after earlier gains, as oil prices rose on reports that Iran is reviewing restrictions on “hostile” vessels in the Strait of Hormuz, a development that kept inflation and rate-hike expectations in focus, according to Reuters via LiveMint Markets.
Spot gold was little changed at $4,244.29 per ounce by 2:50 p.m. EDT, after reaching its highest level since June 18 earlier in the session. The metal had climbed more than 4% on Wednesday, its largest daily gain since February, with an Iranian parliamentary committee reviewing a preliminary bill to bar U.S., Israeli, and other “hostile” vessels from transiting the strait.
Analysts said higher energy prices can feed into inflation as manufacturers pass costs to consumers, reinforcing a higher-for-longer policy stance. The Federal Reserve outlook remained a key driver, with Friday’s U.S. jobs data expected to influence rate expectations, LiveMint Markets reported.
Traders were pricing about a 57% chance of a rate hike at the Fed’s September meeting and an 84% chance for December, using the CME FedWatch Tool. While higher interest rates reduce the appeal of non-yielding bullion, one strategist said sidelined money returned as some technical levels were breached, Reuters reported.
Platinum fell 0.6% to $1,724.64, while palladium rose 0.6% to $1,371.48. Gold was still down around 24% from a record high of $5,594.82 per ounce hit in late January.
Latest closeGold $4,292.00 ▲1.1%|Platinum $1,734.50 ▼0.2%