Gold steadies amid US Iran tensions
Gold prices slightly declined as tensions in the Middle East escalated. The mutual attacks between the United States and Iran raised investors' concerns about their potential impact on oil markets and inflation. Spot gold lost 0.02%, reaching $4,010.42 per ounce, after falling more than 2% over the past week. Meanwhile, futures remained steady at $4,019.40. Oil prices increased following attacks targeting oil facilities in Kuwait and ships in the Strait of Hormuz, heightening worries about energy supplies. However, there is hope for a possible diplomatic resolution as discussions between Washington and Tehran continue, with Iran and Iraq expressing their readiness to negotiate based on their national interests. Analysts expect rising energy costs to hinder the U.S. Federal Reserve's efforts to combat inflation, with expectations of a 40% chance of interest rate hikes in July. Nonetheless, the central bank appears poised to keep rates unchanged this year, while markets react to the rising tensions in the Middle East and their impact on gold and oil prices.
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