(RTTNews) – Gold extended losses on Monday amid renewed Middle East tensions and Fed Chair Kevin Warsh’s hawkish Jackson Hole remarks.
Spot gold slipped 0.4 percent to 4,439 an ounce after tumbling about 3 percent on Friday following Warsh’s hawkish speech. U.S. gold futures were down 0.9 percent at $4,489.61.
Warsh’s speech at the Jackson Holde symposium in the face of rising inflation risks raised market expectations for an interest rate hike in September and again in December.
That said, upcoming August U.S. payrolls report on Friday and consumer price data due on September 11 may give a clearer view of the case for potential rate hikes.
In Europe, EU inflation data due this week may cement market expectations for another rate hike from the European Central Bank when it meets on September 10.
The U.S. dollar held near a two-week high while bond yields ticked lower after U.S. Treasury Secretary Scott Bessent dismissed concerns over rising U.S. debt and instability in the Treasury market.
On the geopolitical front, Iran launched attacks on American forces stationed in Jordan after U.S. forces targeted two Iranian launchers on Larak Island.
The escalation in tensions between Washington and Tehran sent Brent prices surging toward $92 a barrel, reviving inflation and interest-rate concerns.
Washington “took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz,” the U.S. Central Command said.
www.nasdaq.com