Precious-Gold steady as investors gauge US-Iran risks and Fed signals
GLD•Other precious metals
Elsewhere, spot silver XAG= gained 1.6% to $56.79 per ounce, platinum XPT= was up 0.2% at $1,595.08, and palladium XPD= rose 1.3% to $1,264.62.
US-Iran tensions and oil prices in focus
U.S. forces hit Iran for a ninth consecutive day as concerns grew over shipping through the Strait of Hormuz after Iran said two oil tankers had exploded and been immobilised.
Oil prices pared gains, after rising to an over one-month high earlier in the session, as Iran's foreign ministry spokesperson said negotiations with U.S. could be pursued based on national interests. O/R
Elevated oil prices stoke inflation fears and add to bets of higher-for-longer interest rates. While gold is typically seen as an inflation hedge, high interest rates tend to diminish the appeal of the non-yielding asset.
Fed commentary lifts rate-hike expectations
Cleveland Fed President Beth Hammack added her voice to a growing chorus of policymakers arguing interest rates may need to rise to beat back persistent inflation, setting up a charged debate at the Fed's next meeting and the possibility of dissents at Chairman Kevin Warsh's second meeting at the helm.
