(RTTNews) – Gold prices were little changed on Tuesday, after falling to their lowest level nearly eight months ago on fears of a Fed rate hike and US-Iran tensions over control of the Strait of Hormuz. Spot gold was little changed at $4,016 an ounce, but was down more than 11 percent so far in June, its fourth consecutive monthly decline and the biggest quarterly decline since April 2013. US gold futures were down 0.2 per cent at $4,031 an ounce.
Talks between the United States and Iran in Doha appear uncertain following the recent shootings in the Strait of Hormuz.
In a post on Truth Social, US President Donald Trump claimed the meeting would take place in the Qatari capital amid tensions over the Strait of Hormuz and asset releases.
Trump later clarified that the US delegation was only traveling to Doha to monitor the implementation of the recently signed MOU, casting doubt on the future of the fragile US-Iran peace process.
Elsewhere, Iran’s Foreign Ministry spokesman Esmail Baghai said the US officials’ visit to Doha was unrelated to the Iranian delegation’s visit to the city and that no talks were scheduled between the two sides.
“In the coming days, we will not hold any dialogue meeting at any level with the American side,” he said.
A top Iranian official reiterated the country’s determination to maintain control over maritime traffic through the Strait of Hormuz, even if Oman chose not to participate.
There are fears that any increase or disruption in shipping through the vital waterway could reignite concerns over the outlook for energy supply, inflation and interest rates.
As inflation and growth concerns rise, traders are also awaiting cues from key US data this week ahead of the US Independence Day holiday on July 3.
In key reports, the Conference Board’s consumer confidence index, which includes a closely watched measure of job availability, will be released later today, followed by ADP’s monthly private payrolls report and the Institute for Supply Management’s manufacturing survey index on Wednesday.
With the all-important June jobs report due Thursday, economists expect payroll growth to slow to 75,000 from 172,000 in May. The unemployment rate is likely to remain stable at 4.3 percent.
The jobs report will provide new information on whether the Federal Reserve will keep interest rates high for an extended period.
With oil prices back to pre-war levels, the market expects the European Central Bank (ECB) not to raise interest rates in the near term.
ECB Chief Economist Philip Lane said today in Sintra, Portugal that the second-round effects of higher energy prices would probably take some time to be seen and policymakers would not lock themselves in on interest rates in the meantime.
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