By Pablo Sinha <\/p>\n
July 10 (Reuters) – Gold edged lower on Friday and was on track for a weekly fall on concerns that escalating U.S.-Iran \u200ctensions could fuel inflation and keep the Federal Reserve on a hawkish \u200cmonetary policy path. <\/p>\n
Spot gold fell 0.1% to $4,115.79 per ounce by 0601 GMT and was headed for a \u200b1.4% weekly decline. U.S. gold futures for August delivery slipped 0.4% to $4,124.90. <\/p>\n
“Gold is in consolidation mode today following yesterday’s gains, with traders hesitant to commit to further upside amid the prevailing uncertainty over US-Iran relations,” said Tim Waterer, chief market analyst at KCM \u200cTrade. <\/p>\n
Oil prices were on track \u2060for a weekly gain as the U.S. and Iran continued to trade strikes, with Iranian armed forces launching attacks on U.S. \u2060military infrastructure in Gulf states on Thursday following U.S. strikes on Iran’s southern coastal and eastern provinces. [O\/R] <\/p>\n
The latest round of strikes has fuelled inflation concerns and reinforced the probability \u200bof the \u200bFed raising rates this year. <\/p>\n
Markets are pricing \u200bin a 63% chance of a \u200cSeptember rate hike, up from around 54% a week earlier, according to CME’s FedWatch tool. [FEDWATCH\/] <\/p>\n
While gold is typically seen as a hedge against inflation, it loses its appeal as a non-yielding asset in a high-interest-rate environment. <\/p>\n
“I expect gold will continue to attract buyers on dips as long as oil stays around current levels. However, any \u200csharp spike in oil could reignite inflation and \u200binterest rate fears, which would be to gold’s \u200bdetriment,” Waterer said. <\/p>\n
Minutes of the \u200bFed’s June meeting, released earlier this week, showed growing concerns among \u200cpolicymakers about elevated inflation. <\/p>\n
HSBC cut its \u200baverage gold price forecasts \u200bfor 2026 and 2027 on Thursday, citing a hawkish shift in U.S. monetary policy expectations and a stronger dollar. <\/p>\n
Elsewhere, spot silver rose 0.3% to $60.19 per \u200bounce, platinum gained 1.4% to $1,632.99 \u200cand palladium climbed 1.9% to $1,270.54. All three metals were on track \u200bfor a weekly loss. <\/p>\n
(Reporting by Pablo Sinha and Swati Verma in Bengaluru; \u200bEditing by Sherry Jacob-Phillips and Subhranshu Sahu) <\/p>\n","protected":false},"excerpt":{"rendered":"By Pablo Sinha July 10 (Reuters) – Gold edged lower on Friday and was on track for a…\n","protected":false},"author":2,"featured_media":534570,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[4318,5177,42,43,16540,182182,40,38,41,39],"class_list":["post-534569","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-federal-reserve","tag-gold-price","tag-headlines","tag-news","tag-spot-gold","tag-tim-waterer","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/534569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=534569"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/534569\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/534570"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=534569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=534569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=534569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}