Gold edges up as Brent eases, Mideast developments in focus ahead of Fed meet
GLD•Other precious metals
Among other metals, spot silver XAG= rose 0.8% to $58.11 per ounce, platinum XPT= fell 0.8% to $1,587.17, and palladium XPD= fell 1.4% to $1,239.20.
Oil and rate expectations weigh on bullion sentiment
Brent crude oil prices fell over 4%, after rising over 7% to settle above $100 in the previous session for the first time since May, after Iran-aligned Houthis said they struck two Saudi oil tankers in the Red Sea. O/R
Bullion has fallen about 23% since the U.S.-backed war with Iran began in late February, pressured by expectations that war-driven inflation could keep interest rates higher for longer.
While gold is seen as a hedge against inflation, higher rates typically weigh on the non-yielding metal.
Investors now await the U.S. Federal Reserve's policy meeting outcome next week, when it is largely expected to keep rates unchanged.
Traders are pricing in about an 82% chance of a U.S. rate hike in September, according to the CME FedWatch Tool. FEDWATCH
"Recent strength in bullion appears driven largely by dip-buying and short covering. This follows the sharp correction from record highs earlier this year ... Elevated oil prices and rising yields are likely to cap any recovery, leaving $4,000 as the key near-term level to watch," analysts at ING said in a note.
Gold rises as crude pulls back and markets await Fed decision
July 24 (Reuters) - Gold edged up on Friday as Brent crude retreated from above $100 a barrel, while investors assessed developments in the Middle East conflict and their implications for inflation ahead of the U.S. interest rate decision next week.
Spot gold XAU= was up 0.1% at $4,052.78 per ounce by 4:10 p.m. EDT (2010 GMT), after falling about 2% in the previous session. Prices were up 0.9% for the week so far, supported by dip-buying earlier in the week.
