Gold softens on prospects of Fed rate hikes
GLD•Silver gains while platinum and palladium fall
Spot silver XAG= was up 0.1% at $57.76 per ounce and headed for a weekly gain of 3.4%. Platinum XPT= fell 1% to $1,583.91 and palladium XPD= dropped 1.7% to $1,236.16, both on track for a weekly drop.
Gold edges lower as inflation concerns support higher-rate bets
Gold edged lower on Friday after falling 2% in the previous session, as Brent crude's move back above $100 a barrel stoked inflation concerns and strengthened the case for higher interest rates ahead of a Federal Reserve policy meeting next week.
Spot gold XAU= eased 0.2% to $4,037.29 per ounce by 0702 GMT, with prices down more than $130 from a two-week high hit on Wednesday. U.S. gold futures GCcv1 for August delivery were 0.3% lower at $4,039.80. Bullion was still on track for a small weekly gain of 0.5%.
Traders weigh volatility, oil-driven inflation and Fed expectations
"In the short term, we expect more volatility... gold has been trading between $3,980 all the way to about $4,170 and has been stuck in this way for weeks. Every time prices hit close to $4,000 or slightly below, we see that there will be big buyers coming to buy it back up," said GoldSilver Central Managing Director Brian Lan.
U.S. President Donald Trump promised on Thursday "major military punishment" for Iran and its Houthi allies, after the Yemeni fighters struck two Saudi oil tankers in the Red Sea.
Brent crude LCOc1 surged 7% on Thursday, breaking through $100 a barrel for the first time since May in one of the steepest run-ups since the war began. O/R
Elevated oil prices stir market concerns around inflation and the potential for higher-for-longer interest rates. While gold is traditionally seen as a hedge against inflation, its appeal as a non-yielding asset diminishes in a high-interest-rate environment.
