Gold Headed For Weekly Loss On Fed Rate-hike Bets
(RTTNews) - Gold prices traded lower on Friday and headed for a weekly loss despite renewed optimism about U.S.-Iran talks. Both the sides are still at odds over Tehran's uranium stockpile and future control of the Strait of Hormuz.
Spot gold dipped 0.4 percent to $4,525.80 an ounce and headed for a decline of around half a percent for the week due to increased expectations for Federal Reserve rate hikes this year. U.S. gold futures were down 0.7 percent at $4,525.05.
The dollar held near a six-week high amid fears that elevated oil prices will fuel inflation and force central banks to keep interest rates higher for longer.
According to CME Group's FedWatch tool, there is currently a 41 percent chance of a 25 basis-point Federal Reserve rate hike in December.
Brent crude prices remained elevated above $105 per barrel after reports suggested that Iran's Supreme Leader has issued a directive that the country's near-weapons-grade uranium should not be sent abroad.
With mediation in motion and Iranian officials reviewing Washinton's latest peace proposal, U.S. Secretary of State Macro Rubio said there were "some encouraging signs" but warned of "other options" if talks fail.
Rubio criticized Iran's efforts to regulate vessel movement through the Strait of Hormuz after reports emerged that Iran is discussing a permanent toll arrangement with Oman for ships transiting the crucial waterway.
Elsewhere, reports suggested that Egypt an Eritrea are exploring strategies to transform the Red Sea into a strategically critical waterway comparable to the Strait of Hormuz.
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