Spot gold climbed to its highest level since 5 June on Tuesday before easing back, as traders weighed the Federal Reserve's rate path ahead of Wednesday's US inflation data. Oil also rallied after Donald Trump demanded compensation from Iran, deepening the standoff over the Strait of Hormuz.
Gold touched its highest level since 5 June on Tuesday, climbing to $4,434.84 an ounce, before easing back as the session wore on. The metal slipped 0.3% to $4,377 an ounce, giving up part of an advance that had pushed it to a two-month high.
Rate bets keep gold on edge
Traders are waiting on Wednesday's US inflation data for clues on the path of interest rates, after weak jobs data last week led traders to scale back bets that the Federal Reserve will raise rates next month.
Oil jumps as the Iran standoff drags on
Brent crude and US crude futures each rose about 5% on Monday, after Trump responded to Iran's demands to end sanctions and military threats before Tehran resumes talks with Washington. Trump said the US would seek compensation from Iran for damage inflicted over a 50-year period, and added that he is happy to let economic pressure take its toll on Iran.
The rally has pushed Brent closer to $90 a barrel, rising 0.4% to $88.1. US crude rose to $82.52 a barrel, the highest level for both benchmarks since 31 July. The Strait of Hormuz has been effectively closed for months, after the US and Israel started attacking Iran on 28 February, and Tehran has been negotiating with Oman over new shipping lanes to reopen it.
Source: Business | The Guardian
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