Ammon News - Gold ‌prices slipped more than 1% on Tuesday and were on track for their biggest monthly decline since October 2008, as uncertainty in the Middle East gave way to expectations of U.S. interest rate hikes to tame elevated inflation.

Spot gold ​was down 1% at $3,975.04 per ounce, as of 0420 GMT, shedding 12.4% so far in ​the month in what could be its fourth consecutive monthly fall. U.S. gold ⁠futures for August delivery lost 1.2% to $3,988.60.

Bullion was also set for its first quarterly fall since 2024 ​and the largest since the June quarter of 2013, as the Iran war sent energy prices sharply ​higher, stoking inflation fears and bets for interest rate hikes.

While gold is traditionally seen as a hedge against inflation, it loses its ​appeal in a high-interest-rate environment.

Traders expect three Federal Reserve rate hikes this year, and are currently pricing in about ‌a 64% ⁠chance of a September increase, according to the CME FedWatch Tool.

Investors are now awaiting the June ADP employment and nonfarm payroll data, both due this week, to further gauge the Fed's stance on rate hikes.

The dollar strengthened and was headed for a second monthly gain, making greenback-priced bullion more expensive for holders ​of other currencies.

Oil prices ​were on track for ⁠their sharpest quarterly decline since 2020 as investors eyed the outcome of Iranian and U.S. talks in Doha this week, even as Iran said no meeting ​had been scheduled.

Spot silver fell 1.6% to $57.35 per ounce, platinum ​lost 0.5% to $1,566.90 and palladium gained 0.5% to $1,219.55. All three metals were headed for quarterly and monthly losses.


Reuters