Gold, Silver Rates Today LIVE: Gold prices hit a more than six-month low on Thursday as escalating US-Iran war raised concerns around inflation and higher-for-longer interest rates. However, the yellow metal prices rebounded short-covering as investors awaited key US inflation data that could shed more light on the US Federal Reserve policy outlook.
Spot gold rose 0.4% to $4,089.12 per ounce, after hitting its lowest since November 21 at $4,022.09 earlier in the day. US gold futures for August delivery fell 0.5% to $4,111.10. Spot silver prices rose 0.3% to $63.86 per ounce.
The US-Iran war escalated after the US struck multiple targets in Iran overnight, hours after President Donald Trump vowed new attacks if no peace deal is secured.
The fresh attacks in the Middle East lifted crude oil prices, raising inflation concerns. While gold is viewed as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal.
Meanwhile, US consumer inflation increased at its fastest pace in three years in May, data showed. Investors now await the May US Producer Price Index data, due later in the day, to further assess the Fed’s monetary policy stance.
Traders are now pricing in a more than 70% chance of a US rate hike by December, according to the CME FedWatch tool.
Among other commodities, platinum prices gained 0.6% to $1,673.75, and palladium prices rallied 2.2% to $1,239.89.
Stay tuned to this segment for live updates on gold and silver prices.
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