(RTTNews) – Gold rose on Wednesday despite stalled US-Iran peace talks, the release of strong US retail sales data and some sharp comments from Federal Reserve nominee Kevin Wersh at his Senate confirmation hearing.
Spot gold rose 0.8 percent to $4,757 an ounce, after falling more than 2 percent in the previous session. US gold futures were up 1.2 percent at $4,777 an ounce.
The dollar hit a one-week high and Brent crude near $100 a barrel as concerns grew that the Middle East conflict could drag on.
US President Donald Trump has announced a unilateral extension of the two-week ceasefire indefinitely until Tehran presents a “unified proposal” and “the discussions are concluded one way or the other.”
The ceasefire extension helped ease fears of rising inflation and prolonged persistence of high interest rates.
Trump also said he would maintain the naval blockade, which Iran’s leaders have called an act of war.
The Trump administration has imposed new sanctions on networks linked to Iran, halted shipments of US dollars to Iraq and halted security cooperation programs with its military.
Iran rejected Trump’s ceasefire extension as “meaningless” and said the Strait of Hormuz would remain closed until the US blockade of Iranian ports is lifted.
Iran’s Revolutionary Guards-affiliated Tasnim news agency said Iran had not asked for an extension of the ceasefire and had repeatedly threatened to break the US Navy blockade of Iran’s ports and coasts by force.
Meanwhile, Federal Reserve chief candidate Kevin Washon told senators on Tuesday that he has not made any promises to President Trump about cutting interest rates.
He stressed the Fed’s independence, assuring that it would act independently of the White House while pursuing comprehensive reforms.
Trump had told CNBC just hours earlier that he would be disappointed if Warren did not move quickly to reduce borrowing costs.
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