(RTTNews) – Gold prices edged lower on Tuesday as rising oil prices amid escalating Middle East tensions revived inflation and interest-rate concerns.
Spot gold slipped 0.2 percent to $4,396.21 an ounce while U.S. gold futures were down 0.8 percent at $4,440.29 an ounce.
The U.S. dollar index was marginally higher, recovering early losses as investors kept a close eye on developments in the Middle East and looked forward to the release of crucial U.S. inflation data this week, which could influence expectations around the Federal Reserve’s September policy decision.
Brent crude futures surged toward $100 a barrel after Iran threatened to retaliate against any new U.S. attacks on its assets and Saudi-led coalition forces vowed a resolute response to a wave of attacks from Houthi rebels.
Traders also watched for details of an Iranian deal with Oman to manage shipping through the Strait of Hormuz.
As inflation worries mount, the European Central Bank is widely expected to deliver a 25-basis-point interest-rate hike at its upcoming policy meeting on Thursday.
Rising trade tensions between the U.S. and Canada also remained on investors’ radar.
With no sign of a trade deal on the horizon, Canada’s retaliatory tariffs of 15 percent to 50 percent on hundreds of American goods are set to take effect today.
Sharpening the trade standoff with Canada, U.S. President Donald Trump on Monday threatened to block the sale of Bombardier jets in the U.S.
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