Gold prices edged higher from a nearly one-week low on Wednesday, as investors awaited the minutes of the Federal Reserve’s June meeting, while renewed inflation concerns triggered by fresh U.S.-Iran strikes limited gains in the precious metal, News.Az reports, citing Reuters.
Iran’s Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait on Wednesday after the U.S. launched a wave of strikes on Iran and revoked a licence allowing the country to sell oil. The move came after three tankers were hit by projectiles in the Strait of Hormuz.
Spot gold rose 0.6% to $4,128.28 per ounce by 0544 GMT, after earlier falling to its lowest level since July 2. U.S. gold futures for August delivery declined 0.4% to $4,138.80.
Oil prices jumped more than 3%, U.S. Treasury yields advanced, and the dollar edged up to its highest levels in a week.
Markets raised bets on a September Federal Reserve rate hike to more than 63%, up from about 57% on Tuesday, according to the CME FedWatch tool. Minutes from the Federal Open Market Committee’s June 16-17 meeting, due later on Wednesday, are being awaited for clues on the interest rate path under Fed Chair Kevin Warsh.
Gold is widely seen as a hedge against inflation and typically gains during periods of geopolitical uncertainty, but higher interest rates tend to weigh on the non-yielding asset.
Among other metals, spot silver rose 1.3% to $60.77 per ounce, platinum slipped 0.2% to $1,636.72, and palladium dropped 0.3% to $1,272.75.
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