Gold firms to two-week peak on softer dollar; Fed outlook in focus
GLD•Other precious metals
Elsewhere, spot silver XAG= rose 1.1% to $59.4 per ounce, platinum XPT= gained 1.1% to $1,647.17 and palladium XPD= inched up 2.9% to $1,319.74.
Gold rises to two-week high
Gold rose to its highest level in two weeks on Wednesday, buoyed by a softer dollar and technical buying, as markets weighed signs of lingering tensions in the Middle East and awaited fresh cues on U.S. interest rates from the Federal Reserve.
Spot gold XAU= gained 1.3% to $4,130.59 per ounce by 08:32 a.m EDT (1232 GMT), having hit its highest level since July 7 at $4,141.59 per ounce earlier in the day. U.S. gold futures GCcv1 for August delivery rose 1.5% to $4,135.40.
"Gold exploded higher, punching above $4,140 as a weaker dollar and dip buyers injected fresh inspiration into bulls," said Lukman Otunuga, senior research analyst at FXTM.
However, "the underlying bearish fundamentals may cap upside gains — especially with oil prices up over 3% this morning," he added.
Fed outlook and Middle East tensions in focus
The U.S. dollar index softened on Wednesday, making greenback-priced bullion more affordable for buyers overseas. USD/
U.S. Secretary of State Marco Rubio said on Wednesday Washington is willing to negotiate an end to the Iran crisis but Tehran is not serious about talks.
The widening conflict led four tankers loaded with Saudi crude for Asia to reverse course in the Red Sea on Wednesday after threats from Yemen's Iran-aligned Houthis, who control the coast on the southern route out.
Oil prices rose to a near six-week high on the news. O/R
Elevated oil prices due to Gulf supply disruptions have been weighing on gold prices as they raised expectations of higher-for-longer interest rates, which tend to diminish the appeal of non-yielding gold.
