Gold extends decline as Middle East tensions bolster higher-for-longer rate view
GLD•Other precious metals
Among other metals, spot silver XAG= shed 1.6% to $58.8795 per ounce, platinum XPT= dipped 0.3% to $1,622.72, and palladium XPD= dropped 0.7% to $1,267.46.
FedWatch pricing and data ahead
Traders are pricing in about a 71% chance of a U.S. Fed interest rate hike in September, up from nearly 63% last week, according to the CME FedWatch Tool.
This week is packed with U.S. economic data releases, including the June Consumer Price Index and Producer Price Index, retail sales figures, and weekly jobless claims.
Markets also await Kevin Warsh's debut appearance before Congress as Fed Chair on Tuesday and Wednesday for further clues on the economy, inflation and monetary policy goals.
COMEX gold speculators trimmed their net long positions by 1,964 contracts to 114,854 in the week to July 7, data released on Friday showed, following three consecutive weeks of increases.
Gulf escalation lifts oil and inflation worries
U.S. and Iranian forces exchanged heavy missile and drone assaults, with Tehran targeting U.S. facilities in states across the Gulf and hinting at the closure of the Strait of Hormuz. Oil prices rose nearly 3% on the news.
"Renewed hostilities in the Gulf rekindle concerns about inflation and the risk of further Federal Reserve tightening, creating additional headwinds (for gold) through higher bond yields and a stronger dollar," Saxo Bank analyst Ole Hansen said.
