Gold extended its decline on Wednesday as the U.S. dollar strengthened amid expectations of higher U.S. interest rates, while investors assessed conflicting signals surrounding negotiations between the United States and Iran.
Spot gold fell 0.5% to $4,087.68 per ounce by 01:16 GMT, reaching its lowest level since June 11. U.S. gold futures for August delivery dropped 1.1% to $4,105.40 per ounce.
The U.S. dollar climbed to its highest level in more than a year, making gold more expensive for holders of other currencies and reducing demand for the precious metal.
On Tuesday, U.S. President Donald Trump said that Iran had agreed to indefinite nuclear inspections, but Tehran denied making such a concession during negotiations, raising questions about the durability of the agreement between the two sides.
According to the CME Group’s FedWatch Tool, traders are currently pricing in three interest-rate increases by the U.S. Federal Reserve this year.
Investors are also awaiting the release of the U.S. Personal Consumption Expenditures (PCE) price index on Thursday, the Federal Reserve’s preferred measure of inflation, for further clues about the future direction of monetary policy.
Meanwhile, the Chief Executive Officer of the Dubai Gold and Commodities Exchange (DGCX) told Reuters that the exchange will launch same-day settlement gold futures contracts on Monday. The move aims to capitalize on strong demand for safe-haven assets and leverage faster trading infrastructure to boost liquidity in Dubai’s gold market.
Separately, Ghana’s Gold Board announced on Tuesday that it will align its gold pricing system with the internationally recognized London Metal Exchange benchmark starting July 1. The board will also impose strict purchase-price caps to improve market discipline and curb irregular trading activities.
Among other precious metals:
* Silver fell 1.1% to $61.36 per ounce.
* Platinum declined 0.9% to $1,637.34 per ounce.
* Palladium dropped 1.2% to $1,223.29 per ounce.
Source: Reuters
