Now Reading: Gold Touches $4,300 as Hormuz Tensions Lift Inflation Fears
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Gold Touches $4,300 as Hormuz Tensions Lift Inflation Fears
Spot gold briefly crossed $4,300 an ounce on Thursday, reaching its highest level since June 18, before paring gains. NDTV Profit put the metal’s close at about $4,268, while Reuters reported by…
The Story in Brief
Spot gold briefly crossed $4,300 an ounce on Thursday, reaching its highest level since June 18, before paring gains. NDTV Profit put the metal’s close at about $4,268, while Reuters reported by way of Mint that spot gold was at $4,244.29 and US gold futures settled 0.1% lower at $4,299.60.
Oil rose more than $3 a barrel after Iran’s parliamentary committee reviewed a bill that could bar US, Israeli and other hostile vessels from the Strait of Hormuz. The move revived inflation concerns and expectations of higher US interest rates. Traders are awaiting Friday’s US jobs report, with a Reuters poll forecasting 80,000 new jobs in July and unemployment at 4.2%.
The Indian Opinion
The easy story is that every rise in gold signals panic, or that Hormuz alone determines its price. Neither holds. Gold is also responding to US rate expectations, while the reported Iranian measure remains under review. The sharper test is Friday’s jobs data and the Federal Reserve’s response. If inflation risks lift rate expectations further, gold’s next move will show whether this rally has real staying power.
Sources (4): ndtvprofit.com, livemint.com, livemint.com (2), livemint.com (3)
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
