Gold steadied near US$4,156 an ounce on June 22, after posting a third straight weekly decline, as renewed geopolitical tensions and inflation concerns weighed on investor sentiment according to Bloomberg.
The precious metal traded little changed at US$4,155.80 an ounce in early Singapore trading, following a 1.5% drop last week.
Market jitters resurfaced after US President Donald Trump threatened fresh military action against Iran during high-level talks aimed at securing a permanent resolution to the conflict that has rattled global markets.
Negotiations in Switzerland got off to a shaky start after Iranian media reported Tehran had suspended discussions in response to Trump’s warning. However, sources familiar with the matter said talks continued into the early hours of Monday.
Oil prices climbed amid concerns over regional stability after Iran accused Israel of breaching a ceasefire in Lebanon, despite crude shipments continuing through the Strait of Hormuz. The two sides signed a memorandum of understanding last week, opening a 60-day window for further negotiations.
Gold has fallen more than 20% since the conflict erupted in late February. Rising energy prices linked to disruptions around Hormuz have fuelled inflation concerns and increased expectations of higher interest rates, reducing the appeal of non-yielding assets such as gold.
Investors are also assessing the Federal Reserve’s policy outlook after new Fed Chairman Kevin Warsh struck a hawkish tone on inflation at his first policy meeting last week.
Attention now turns to the US personal consumption expenditures (PCE) price index due on Thursday, a key inflation gauge that could offer fresh clues on the direction of interest rates.
Elsewhere, silver fell 0.2% to US$64.78 an ounce after a 4.6% weekly decline. Platinum was little changed, while palladium edged higher. The Bloomberg Dollar Spot Index rose 0.1%.
