Ammon News - Gold prices swung ​between gains and losses on Wednesday, as concerns around inflation and higher interest ‌rates rose after fresh U.S. strikes on Iran lifted oil and the dollar ahead of the release of the Federal Reserve's June meeting minutes.

Spot gold rose 0.5% to $4,125.59 per ounce by 0305 ​GMT, after dropping to its lowest since July 2 earlier in the ​day. U.S. gold futures for August delivery shed 0.5% to $4,136.30.

The U.S. military unleashed a new wave of strikes against Iran on ​Tuesday and revoked a licence allowing the country to sell oil after three tankers were hit by ‌projectiles ⁠in the Strait of Hormuz.

U.S. oil prices jumped nearly 3% in early trade, U.S. Treasury yields advanced, while the dollar clung to its highest levels of the week against most of its peers as the strikes against Iran put pressure on ​an already fragile ceasefire.

Markets ​have increased their ⁠bets for a September Federal Reserve rate hike to an over 63% chance, up from about 57% on Tuesday, the CME ​FedWatch tool showed. FEDWATCH/

Investors also awaited minutes of the Federal Open ​Market Committee's ⁠June 16-17 meeting, due later today, for fresh clues on the interest rate path under Fed Chair Kevin Warsh.

While gold is seen as an inflation hedge, high interest ⁠rates ​tend to weigh on the non-yielding asset.

Among other metals, ​spot silver rose 0.8% to $60.47 per ounce, platinum slipped 0.3% to $1,635.45 and palladium dropped 0.6% to $1,268.64.


Reuters