Gold slips as inflation fears and Iran war cloud US rate outlook
Updated
Updated · Reuters · May 4
Gold slips as inflation fears and Iran war cloud US rate outlook
15 articles · Updated · Reuters · May 4
Spot gold fell 0.2% to $4,605.19 an ounce and June futures lost 0.6% to $4,616.30 in thin holiday trade, with China, Japan and UK markets shut.
Analysts said last week's hawkish Fed messaging and oil above $100 a barrel could keep rates higher for longer, reducing gold's appeal against yielding assets such as Treasuries.
Markets were also watching U.S.-Iran diplomacy after Trump said Washington would help free stranded Hormuz ships, a tanker reported projectile damage, and Tehran reviewed a U.S. response to its 14-point proposal.
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?