Gold eases on stronger oil as fresh Mideast hostilities erupt

Gold prices slipped on Wednesday, as renewed hostilities in the Middle East pushed crude oil prices higher, cementing fears that interest rates would stay ​higher for longer to tame inflation.

Spot gold fell 0.2% to $4,476.50 ‌per ounce by 0103 GMT. U.S. gold futures for August delivery fell 0.3% to $4,504.40.

Gulf hostilities flared anew on Wednesday, with the U.S. military saying Iranian missile attacks on Bahrain, ​Kuwait and other regional targets were either thwarted or failed as ​diplomacy between Washington and Tehran showed little progress.

U.S. Secretary of ⁠State Marco Rubio said on Tuesday that President Donald Trump’s negotiating team ​has not offered Iran sanctions relief in exchange for reopening the Strait of Hormuz ​and insisted that any sanctions relief was tied to Tehran giving up its nuclear programme.

Oil prices rose more than 1% in early trade on Wednesday, deepening concerns over inflation ​and interest rate hikes.

Cleveland Federal Reserve President Beth Hammack said on Tuesday ​the U.S. central bank may need to raise interest rates soon should already-high inflation pressures continue ‌to ⁠mount.

Investors are now awaiting the U.S. nonfarm payroll data, due later in the day, and employment report on Friday to gauge the Fed’s monetary policy path.

Gold exports from Switzerland in April fell 20% from the previous month ​as shipments to ​Britain and China ⁠slowed, offsetting higher deliveries to India and Hong Kong, Swiss customs data showed on Tuesday.

India has tightened restrictions on silver imports ​by adding grain and powder forms to the list ​of restricted ⁠categories and mandating prior valid import authorisation, as the world’s biggest consumer of the metal tries to rein in shipments and ease pressure on the rupee.

Spot ⁠silver ​fell 0.5% to $74.73 per ounce, platinum lost 0.2% ​to $1,932.25, and palladium fell 0.3% to $1,365.25.