Gold slips as inflation fears and hawkish Fed cloud rate outlook
Updated
Updated · Reuters · May 4
Gold slips as inflation fears and hawkish Fed cloud rate outlook
15 articles · Updated · Reuters · May 4
Spot gold fell 0.2% to $4,606.38 an ounce and June futures lost 0.6% to $4,617.40 in thin Monday trade, with China, Japan and UK markets shut.
Investors also watched U.S.-Iran peace efforts after Donald Trump said Washington would help free ships stranded in the Strait of Hormuz and Tehran reviewed a U.S. response to its 14-point proposal.
Fed officials said the Iran war's oil shock could keep rates higher for longer or even lift borrowing costs, pressuring non-yielding gold as oil stayed above $100 a barrel.
As Iran peace talks falter, can gold's safe-haven appeal overcome high interest rates and drive prices to new records?
Strategic oil reserves are depleting. How long can the global economy withstand the Hormuz blockade before a severe recession begins?