Gold Poised for Weekly Loss as Hawkish Fed Overshadows US-Iran Peace Deal
Gold is on track for a third consecutive weekly loss, as a hawkish Federal Reserve and rising interest rate expectations weigh more heavily than optimism from the interim peace deal between the United States and Iran.
Bullion traded below $4,200 an ounce in early trading, after sliding 1.1% on Thursday, and is set for a moderate decline throughout the week. Comments from new Fed Chairman Kevin Warsh on Wednesday reinforced expectations for tighter monetary policy later this year, putting pressure on non-yielding gold.
Meanwhile, commercial shipping began returning to the Strait of Hormuz after the U.S. announced the end of its blockade, easing concerns over prolonged energy shortages. However, inflation worries remain, as analysts note it could take months or longer for oil and liquefied natural gas flows through this critical route to return to pre-conflict levels.
As of 7:46 a.m. Singapore time, spot gold was down 0.4% at $4,191.21 an ounce. Silver declined 0.4% to $65.37, while platinum and palladium also edged lower. The Bloomberg Dollar Spot Index, a gauge of the U.S. dollar, was slightly lower after gaining 0.8% over the previous four sessions.
Source : Newsmaker.id
