Gold slips as oil jumps after Trump says Iran peace deal 'over'
Gold | 2026-07-08 05:28:05 | By Paul Ploumis
Meanwhile, China's central bank on Tuesday reported its biggest monthly increase in gold reserves in more than two and a half years in June.
SEATTLE (Scrap Monster): Gold prices fell more than 1% on Wednesday after U.S. President Donald Trump said an interim peace deal with Iran was 'over', sending oil prices higher and stoking fears of inflation and higher U.S. interest rates.
Spot gold fell 1.02% to $4,063.67 per ounce by 0850 GMT, after dropping to its lowest since July 2 earlier in the session. U.S. gold futures for August delivery shed 1.97% to $4,074.80/oz.
Trump said that the memorandum of understanding signed with Iran to end their four-month conflict in June was 'over', adding he didn't want to engage with Tehran. Oil prices gained more than 5% after his comments.
Earlier, Iran's Revolutionary Guards said they targeted U.S. military bases in Bahrain and Kuwait following U.S. strikes on Iran and the revocation of a license to allow the country to sell oil.
While gold is traditionally considered a safe haven, higher energy prices due to the war have raised concerns of inflation and higher interest rates, which would weigh on the non-yielding metal.
Fed's minutes, due at 1800 GMT, will be closely watched for clues on the future trajectory of interest rates.
'Gold is likely to stay in a consolidation mode in the short term. We need to have further weakening of U.S. jobs data and lower U.S. inflation figures allowing Fed officials to sound less hawkish in respect to policy decisions, to see gold prices moving higher,' said UBS analyst Giovanni Staunovo.
Markets currently expect a 66% chance for a U.S. rate hike in September, compared to 62% on Tuesday, the CME FedWatch tool showed.
Meanwhile, China's central bank on Tuesday reported its biggest monthly increase in gold reserves in more than two and a half years in June.
Among other metals, spot silver fell 2.37% to $58.59 per ounce, platinum slipped nearly 3% to $1,591.88, and palladium dropped 3.9% to $1,227.18.
Courtesy: www.reuters.com