Gold eases as fresh US-Iran tensions lift oil prices, rate-hike bets

Gold eased on Wednesday to its lowest level in nearly a week , as US strikes on Iran boosted oil prices and the dollar, raising concerns that ​inflation could keep interest rates higher for longer and weigh on non-yielding ‌bullion. Spot gold fell 0.1% to $4,100.32 per ounce by 0107 GMT, after dropping to its lowest since July 2 earlier in the day. US gold futures for August delivery shed 1.1% to $4,112.50. The ​US military unleashed a new wave of strikes against Iran on Tuesday and revoked ​a licence allowing the country to sell oil after three tankers were ⁠hit by projectiles in the Strait of Hormuz, putting pressure on an already fragile ​ceasefire. US oil prices jumped nearly 3% in early trade, extending the previous session’s ​gains, while the U.S. dollar clung to its highest levels of the week against most of its peers. Markets have increased their bets for a September Federal Reserve rate hike to over 67% ​chance, up from about 57% on Tuesday, the CME FedWatch tool showed. Investors also ​awaited minutes of the Federal Open Market Committee’s June 16-17 meeting, due later on Wednesday, for fresh ‌clues ⁠on the interest rate path under new Fed Chair Kevin Warsh. While gold is seen as an inflation hedge, high interest rates tend to weigh on the non-yielding asset. US consumers grew more concerned about near-term inflation pressures in June, a New York Fed ​report showed on Tuesday. China’s ​central bank reported ⁠its biggest monthly increase in gold reserves in more than two-and-a-half years in June, official data showed on Tuesday, although bullion prices ​tumbled. Beijing and Hong Kong authorities unveiled a range of ​measures to ⁠bolster currency, bond and gold trading in Hong Kong. Hong Kong launched a central clearing system for gold on Tuesday and revived dollar gold futures trading. It is also looking at ⁠introducing yuan-denominated ​gold futures as it seeks to become a ​regional reserve hub for the precious metal. Elsewhere, spot silver fell 0.3% to $59.82 per ounce, platinum slipped 1.2% ​to $1,620.38 and palladium dropped 1.6% to $1,256.25.