Gold Hovers Near Seven-Week Low as Investors Await U.S. Data
Gold prices were little changed on Tuesday, hovering near their lowest level in more than seven weeks as concerns that the U.S. Federal Reserve could keep interest rates elevated for longer weighed on the precious metal. Investors were also awaiting a batch of U.S. economic data for clues on the outlook for monetary policy.
Spot gold was largely unchanged at $4,124.57 an ounce by 0140 GMT, after touching its lowest level since Aug. 5 in the previous session. U.S. gold futures fell 0.3% to $4,156.70 an ounce.
Higher interest rates tend to weigh on gold, which does not pay interest, by increasing the opportunity cost of holding the non-yielding asset.
Oil prices, meanwhile, rose for a second consecutive session as persistent concerns over supply disruptions in the Middle East linked to the conflict between the United States and Iran outweighed signs of a recovery in crude exports from the region.
Brent crude futures rose 63 cents, or 0.6%, to $105.91 a barrel by 0002 GMT, while U.S. West Texas Intermediate crude gained 72 cents, or 0.8%, to $93.32 a barrel.