Gold reverses course to edge lower as Iran's Hormuz proposal lifts crude
GLD•Other metals
Among other metals, spot silver XAG= fell 1.5% to $61.13 per ounce.
Platinum XPT= fell 0.7% to $1,723.20, and palladium XPD= rose 0.6% to $1,371.00.
Fed outlook and jobs data remain key for bullion
Higher energy prices feed into inflation as manufacturers pass costs to consumers, encouraging central banks to adopt a higher-for-longer stance to combat price pressures.
The Federal Reserve outlook remains the main driver for gold and Friday's U.S. jobs data will influence what the central bank says on interest rates, said Bob Haberkorn, senior market strategist at StoneX.
"A lot of money that was on the sidelines started coming back into gold yesterday with some technical levels being breached," Haberkorn said.
Traders are currently pricing in about a 57% chance of a rate hike at the central bank's September meeting, and an 84% chance of a hike in December, according to the CME FedWatch Tool. FEDWATCH/
Higher interest rates raise the opportunity cost of holding non-yielding bullion, making gold less attractive to investors.
Gold slips as oil rally revives inflation concerns
Aug. 6 (Reuters) - Gold reversed course and fell on Thursday, as a rise in oil markets following reports that Iran was reviewing restrictions on "hostile" vessels transiting the Strait of Hormuz reignited inflation fears and stoked rate hike expectations.
Spot gold XAU= was down 0.3% at $4,233.64 per ounce by 12:40 p.m. EDT (1640 GMT). Prices had hit their highest level since June 18 earlier in the session. The yellow metal climbed over 4% on Wednesday, its largest daily gain since February.
U.S. gold futures GCcv1 fell 0.3% to $4,291.30.
