(RTTNews) – Gold prices rebounded on Thursday after falling to a six-month low earlier amid heightened U.S.-Iran tensions and Fed rate hike concerns.
Spot gold was up 0.6 percent at $4,095.45 an ounce after reaching a six-month low at $4,024 an ounce earlier. However, U.S. gold futures were down half a percent at $4,114.42.
The dollar wobbled as fresh U.S.-Iran military clashes cast doubt on the prospects for a peace deal and data showed consumer inflation soared to its highest level in three years in May, matching expectations.
After launching a wave of new strikes on multiple targets in Iran, U.S. President Donald Trump said that the Iranians were delaying a deal and that there would be more attacks if no peace deal is secured.
Iran has vowed to retaliate and accused the U.S. of ‘war crimes’, citing damage to civilian infrastructure.
Tehran also announced it would keep the Strait of Hormuz, a critical global energy shipping route, “completely closed to all type of vessels.”
Iran’s Islamic Revolutionary Guard Corps said early today they had launched counterattacks on 18 U.S.-military targets at airbases in Kuwait and Bahrain.
As energy prices take center stage, the European Central Bank (ECB) is set to raise interest rates for the first time since 2023 when it meets later today.
Across the Atlantic, the U.S. Federal Reserve is likely to keep rates on hold at the June 16-17 meeting, but traders see a greater likelihood of a hike as early as October.
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