(RTTNews) – Gold prices were slipping on Monday after posting their first weekly gain since May as expectations for an immediate rate hike by the Federal Reserve fell.
Spot gold fell 0.9 percent to $4,139.59 an ounce while US gold futures were up 0.6 percent at $4,150.19.
Brent crude futures were trading below $72 a barrel on growing concerns over a potential supply glut. As noted, tensions remain elevated around the Strait of Hormuz as Iran seeks to tighten control over the strategic shipping route.
As talks continue with the US over long-term management of the waterway, Tehran said it would seek special treatment with Beijing and other friendly countries when it sets fees for ships passing through the waterway.
Considering the geopolitical risk premium, the US and Gulf Arab states reject any allegations on the waterway.
Meanwhile, the US dollar edged closer to a two-week low after posting its biggest weekly decline since April last week on easing inflation and Fed rate hike concerns.
Among economic releases, index readings from S&P Global and the Institute of Supply Management as well as minutes from the Federal Reserve’s last meeting will be in the headlines this week after last week’s disappointing June jobs report.
As yields move closer to 5 percent, US Treasury auctions for 10-year and 30-year bonds will weigh on crypto and risk assets.
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