Gold declines as renewed US-Iran strikes fuel Fed rate-hike bets | Metals Mine

  • Gold declines as renewed US-Iran strikes fuel Fed rate-hike bets

    From businesstimes.com.sg

    Gold declined after the US and Iran exchanged strikes over the weekend of Jul 11 and 12, sending energy prices higher and once more raising the prospects for interest-rate hikes to combat inflation. Bullion fell as much as 1.2 per cent to below US$4,070 an ounce on Monday (Jul 13), having lost 1.4 per cent in the week ended Jul 12. Confusion governed the status of energy transit via the Strait of Hormuz, with the US denying an earlier statement by Iran that the waterway would be closed “until further notice.” American forces started attacks to ensure freedom of navigation, according to US Central Command. For ... (full story)

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ZforexCM
19 hr ago
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Gold slipped below $4,100 as renewed fighting between the U.S. and Iran pushed oil prices higher and reinforced expectations that the Fed may need to keep interest rates elevated for longer. The latest strikes around the Strait of Hormuz have revived inflation concerns, supporting the dollar and Treasury yields at the expense of non-yielding assets like gold.

With June CPI data and Fed Chair Kevin Warsh's congressional testimony due this week, traders are looking for fresh clues on the path of U.S. monetary policy. Unless inflation shows signs of cooling, gold may continue to struggle against the backdrop of higher yields and a stronger dollar.

First resistance is seen at $4120, with initial support near $4020.

R1: 4120 | S1: 4020
R2: 4160 | S2: 3950
R3: 4200 | S3: 3900
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