Gold falls as Mideast escalation dims hopes of easing inflation
GLD•Other precious metals also decline
Elsewhere, spot silver XAG= fell 1.1% to $57.14 per ounce. Platinum XPT= eased 0.6% to $1,664 and palladium XPD= edged 0.3% lower to $1,309.86.
Oil gains, inflation data and Fed remarks in focus
Oil prices extended gains to a fourth session as the U.S. launched two waves of attacks on Iran's coastal defences and missile sites after re-imposing a naval blockade of its ports.
Iran struck back by targeting U.S. military sites in neighboring countries in what it called an "existential war" with America. O/R
"June's inflation figures did not reflect the impact of the latest escalation in the U.S.-Iran conflict, as the interim peace union reached last month has effectively unravelled," Trivedi added.
U.S. consumer and producer inflation slowed in June, amid a pullback in the cost of energy products, reinforcing evidence that inflation was subsiding before the recent escalation in the Middle East conflict.
The moderation was, however, not enough to convince financial markets to rule out a Federal Reserve interest rate hike this year.
Traders are still pricing an about 73% chance of a December Fed rate hike, CME FedWatch Tool's data showed. FEDWATCH/
Fed Governor Lisa Cook said on Wednesday she is "prepared to act" if inflation does not soon begin to slow.
Fed Chairman Kevin Warsh also declared his determination to bring inflation down without hinting at how.
Investors are now looking out for remarks from Dallas Fed President Lorie Logan and Fed Vice Chair Philip Jefferson due to speak later today.
