(RTTNews) – Gold prices fell on Friday and headed for a weekly loss despite renewed optimism about US-Iran talks. The two sides are still at odds over future control of Tehran’s uranium reserves and the Strait of Hormuz.
Spot gold fell 0.4 percent to $4,525.80 an ounce and is on track for a decline of about half a percent this week as expectations grew for another rate hike by the Federal Reserve this year. US gold futures were down 0.7 percent at $4,525.05.
The dollar remains at a six-week high amid fears that higher oil prices will fuel inflation and force central banks to keep interest rates higher for longer.
There is currently a 41 percent chance the Federal Reserve will raise rates by 25 basis points in December, according to CME Group’s FedWatch tool.
Brent crude prices remain above $105 a barrel after reports suggested Iran’s supreme leader has issued a directive that the country’s near-weapons-grade uranium should not be shipped abroad.
With the proposal involving mediation and a review of Washington’s latest peace proposal by Iranian officials, US Secretary of State Marco Rubio said there were “some encouraging signs” but warned of “other options” if talks fail.
Rubio criticized Iran’s efforts to regulate the movement of ships through the Strait of Hormuz after reports emerged that Iran was discussing a permanent toll arrangement with Oman for ships passing through the vital waterway.
Elsewhere, reports suggest that Egypt and Eritrea are exploring strategies to turn the Red Sea into a strategically important waterway on par with the Strait of Hormuz.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Reflect the views of.
