(RTTNews) – Gold was little changed on Monday, reversing early losses as the dollar weakened and risk currencies gained on signs of new diplomatic efforts between the United States and Iran.
Spot gold was marginally up at $4,020.14 an ounce after registering a second consecutive weekly decline amid expectations that US interest rates would remain high. US gold futures were up 0.1 percent at $4,024.12.
Brent crude futures slipped slightly to around $88 a barrel in choppy trade, after rising 2 percent earlier in the session to $91 a barrel, as the United States launched strikes against Iran for the ninth consecutive day and Iran retaliated against US assets across the Middle East, posing a threat to shipping in the Strait of Hormuz.
Prices fell after Tehran vowed to step up diplomatic efforts along with a military response and protect security in the Strait of Hormuz, which should help ease some supply concerns.
“We will not discuss their details at this stage. While our armed forces respond firmly and decisively to the source of American aggression, diplomacy is fully aware of its duties and leaves no stone unturned in fulfilling them,” Foreign Ministry spokesman Esmail Baqai was quoted as saying during a press conference.
This week’s US economic calendar is relatively slow, with investors awaiting preliminary PMI surveys for the manufacturing and services sector, key economic indicators for June and new home sales data for June for more information about the economic and rate outlook ahead of the Federal Reserve’s next monetary policy meeting on July 29.
Federal Reserve Bank of Cleveland President Beth Hammack said Friday that persistently high inflation is her biggest concern, joining others in arguing that interest rates may need to rise. Currently, futures show a 60 percent chance of a rate hike in early September.
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