Gold eases as markets assess Middle East escalation, Fed hike bets
GLD•Other precious metals
Elsewhere, spot silver XAG= gained 1.3% to $56.61 per ounce, while platinum XPT= was down 0.3% at $1,587.20, and palladium XPD= inched 0.3% lower to $1,243.99.
Fed commentary boosts December hike expectations
Cleveland Fed President Beth Hammack added her voice to a growing chorus of policymakers arguing interest rates may need to rise to beat back persistent inflation, setting up a charged debate at the Fed's next meeting on July 29.
Traders are now pricing an 82% chance of a December interest-rate-hike, versus 73% last week, according to the CME FedWatch tool. FEDWATCH/
"On the longer term, I'm more cautious on gold and looking at the key $3,886 level, which, if taken out on the downside, could potentially unleash further weakness towards $3,500," said Kelvin Wong, a senior market analyst at OANDA.
Gold edges lower as oil and Fed rate-hike bets weigh
July 20 (Reuters) - Gold prices edged lower on Monday as investors assessed an escalation in the Middle East war that pushed oil prices higher, while another U.S. Federal Reserve policymaker signalled that interest rate hikes may be needed to curb price pressures.
Spot gold XAU= inched 0.3% lower to $4,004.63 per ounce, as of 0635 GMT. U.S. gold futures GCcv1 for August delivery lost 0.2% to $4,008.70.
Oil prices jumped more than 3% after U.S. forces struck Iran for a ninth consecutive day on Monday as the number of confirmed American military deaths in the renewed fighting rose to three and concerns grew over shipping through the Strait of Hormuz. O/R
"The war is still ongoing, with a focus on rising oil prices that could lead to higher inflation, which is keeping gold pressured," said GoldSilver Central Managing Director Brian Lan.
