BENGALURU: Gold prices edged lower on Wednesday as investors assessed ongoing tensions between the US and Iran, and awaited comments from Federal Reserve officials for monetary policy clues.
Spot gold was down 0.3 percent at $4,493.43 per ounce, as of 08:45 a.m. Saudi time. US gold futures for June delivery fell 0.2 percent to $4,491.50.
“It looks like the overall trend is down, but we’re getting these long periods of consolidation, and I think that’s sort of what we’re looking at here today,” said Ilya Spivak, head of global macro at Tastylive.
“The market is increasingly focused on whether we are in fact going to get some kind of a breakthrough in this (U.S.-Iran) story.”
Iran said on Tuesday the US had violated a ceasefire by striking targets near the contested Strait of Hormuz, potentially complicating efforts to bring the war to a close.
US Secretary of State Marco Rubio said it could take “a few days” to negotiate a deal to halt the conflict, after both sides had previously indicated progress on an initial agreement that would end hostilities and restart shipping through the Strait.
Investors are awaiting comments from Fed policymakers, including Vice Chair Philip Jefferson and Governor Lisa Cook, to gauge the impact of inflation on future monetary policy stance.
The April US Personal Consumption Expenditures data, due on Thursday, is also in focus for more clues on US monetary policy.
Inflation risks and bond moves have been so significant that attention has shifted from what gold is paying, Spivak said, adding that bullion could “reach as low as maybe $3,700 to $3,800 by year-end if the trend continues.”
Spot silver fell 1.8 percent to $75.58 per ounce, platinum slid 1.6 percent to $1,928.65, and palladium was down 0.8 percent at $1,368.34.
