Gold eases as fresh US-Iran tensions lift oil prices, rate-hike bets
Gold eased on Wednesday to its lowest level in nearly a week, as US strikes on Iran boosted oil prices and the dollar, raising concerns that inflation could keep interest rates higher for longer and weigh on non-yielding bullion. Spot gold fell 0.1% to $4,100.32 per ounce by 0107 GMT, after dropping to its lowest since July 2 earlier in the day. US gold futures for August delivery shed 1.1% to $4,112.50. The US military unleashed a new wave of strikes against Iran on Tuesday and revoked a licence allowing the country to sell oil after three tankers were hit by projectiles in the Strait of Hormuz, putting pressure on an already fragile ceasefire. US oil prices jumped nearly 3% in early trade, extending the previous session’s gains, while the U.S. dollar clung to its highest levels of the week against most of its peers.