(RTTNews) – Gold prices fell below $4,400 an ounce on Tuesday after rising for two straight sessions.
Spot gold fell 0.6 percent to $4,390.94 an ounce as rising oil prices and bond yields amid an apparent impasse in Middle East peace talks rekindled inflation and interest-rate worries. U.S. gold futures were down 0.7 percent at $4,444.82.
Brent crude futures climbed above $91 a barrel while Euro zone long-dated bond yields hit multi-year highs as U.S. President Donald Trump ruled out extending a temporary ceasefire agreement with Iran and Tehran said it is preparing to shift to a “fully offensive” military posture.
Trump has threatened to bomb Oman if it “gets in the way” of his administration’s own talks with Iran.
He emphasized the effectiveness of the U.S. naval blockade on Iran, declaring the Strait of Hormuz a “U.S. territory” and asserting Washinton DC has total control over the region.
A cargo vessel was struck by a projectile while transiting the Strait of Hormuz, the UKMTO said today, deepening concerns over shipping safety and clouding the prospects of a diplomatic resolution to reopen the Strait of Hormuz, a key route for global energy supplies.
The U.S. dollar edged up slightly but held near multi-month lows against its major peers ahead of a slew of data, including reports on U.S. import/export prices, housing starts, industrial production and pending home sales due later in the day.
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