SINGAPORE: Gold prices declined on Thursday, hovering near their lowest level in a week touched in the previous session, as escalating tensions between the United States and Iran drove oil prices higher and stoked inflation concerns, reinforcing expectations that interest rates will remain elevated for a prolonged period.
Spot gold fell 0.4 per cent to $4,060.46 per ounce, after dropping yesterday to its weakest level since the beginning of July, while US gold futures for August delivery shed 0.3 per cent to settle at $4,069.80.
According to the CME FedWatch tool, markets are pricing in a 68 per cent probability of a US interest rate hike in September and an 87 per cent likelihood of a hike by January 2027.
Among other precious metals, spot silver declined 0.9 per cent to $57.77 per ounce, while platinum rose 0.8 per cent to $1,591.13, and palladium gained 0.8 per cent to reach $1,223.95. — ONA
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