Gold lacklustre as higher-for-longer rate outlook weighs on sentiment
GLD•Other precious metals also decline
Among other metals, spot silver XAG= fell 1.2% to $66.24 per ounce, platinum XPT= lost 1.4% to $1,807.80 and palladium XPD= declined 1.1% at $1,293.68.
Gold slips as investors weigh higher-for-longer rates
Gold prices fell on Wednesday as investors weighed the prospect of major central banks keeping interest rates elevated for longer in their efforts to curb persistent inflation.
Spot gold XAU= fell 0.6% to $4,329.31 per ounce, as of 0623 GMT. US gold futures GCcv1 for December delivery were down 0.2% at $4,366.90.
The dollar rose to its strongest level in two months. A firmer dollar makes greenback-priced bullion more expensive for overseas buyers. USD/
"Short-term volatility in gold very much depends on how oil trades and the developments that happen in the Middle East. However, long-term structural drivers for gold are still really strong," said Kyle Rodda, senior financial market analyst at Capital.com. O/R
While bullion is often seen as a safeguard against inflation, its appeal tends to wane when elevated rates boost returns on interest-bearing investments.
Fed comments and rate outlook keep pressure on bullion
US President Donald Trump warned that he could annihilate Iran if there is no deal to end the war, but also suggested an agreement could come soon amid a diplomatic push at the United Nations.
Boston Federal Reserve President Susan Collins wrote in a Linkedin post that she supported the US central bank's decision last week to raise interest rates in the face of risks that future inflation will be above the 2% target. Collins, who is not a voting member of the rate-setting Federal Open Market Committee this year, did not say if she wants rates to go up again.
