Gold pulled back on Thursday after hitting a two-week high, as rising oil prices and growing tensions in the Middle East kept investors on edge. Traders are also waiting for next week’s U.S. Federal Reserve meeting for more clarity on future interest rate decisions.
Spot gold was little changed at $4,132.01 per ounce after reaching $4,165.87 in the previous session, its highest level since July 7. Meanwhile, U.S. gold futures for August delivery slipped 0.4% to $4,134.60 per ounce.
The move in gold came as oil prices climbed to their highest levels in more than six weeks. The increase was driven by ongoing U.S. strikes on Iran and concerns that tensions in the region could threaten important oil shipping routes.
At the same time, the U.S. dollar edged down 0.1%, while the yield on the benchmark two-year Treasury note rose to its highest level in 17 months. Investors are worried that higher energy prices could push inflation higher and increase the chances of another interest rate hike.
Markets are now focused on next week’s Federal Reserve meeting. Most analysts expect rates to remain unchanged for now, but many investors still believe there could be at least one rate increase before the end of the year.
Other precious metals also moved higher. Silver gained 0.3% to $59.90 per ounce, platinum rose 0.7% to $1,656.24, and palladium added 0.8% to reach $1,301.25 per ounce.
