Gold fell over 1% on Tuesday and was set for a fourth straight monthly decline, as uncertainty in the Middle East gave way to expectations of U.S. interest rate hikes to tame inflation.
Spot gold declined 1.5% to $3,957.74 per ounce by 0112 GMT and was set for a monthly fall of 12.7%. U.S. gold futures for August dlivery lost 1.7% to $3,971.60.
The U.S. dollar was headed for a monthly gain, making bullion more expensive for holders of other currencies. [USD/]
Iranian and U.S. negotiating teams were due to meet in Doha this week, but Iran said on Monday no meeting had been scheduled as weekend missile fire from both sides tested the interim ceasefire to end the four-month-old war.
The U.S. Supreme Court refused on Monday to let Donald Trump fire Federal Reserve Governor Lisa Cook as it stood firm to preserve the central bank’s cherished independence against an unprecedented challenge by the Republican president.
Traders expect three Fed interest rate hikes this year, and are currently pricing in about a 63% chance of a September increase, according to the CME FedWatch Tool. [FEDWATCH/]
Investors are now awaiting the June ADP employment and nonfarm payroll data, both due this week, to further gauge the Fed’s stance on rate hikes.
Guinea aims to become a regional gold refining hub, its mines minister said, joining a broader push by West African producers to process bullion locally rather than exporting it to the Middle East and beyond.
Spot silver fell 2.4% to $56.89 per ounce, platinum lost 1.1% to $1,557.08, while palladium slid 0.5% to $1,207. All three metals were headed for monthly losses.
