Gold was steady after a moderate rise the previous day as traders weighed Middle East tensions following President Donald Trump's comments that the US wouldn't attack Iran before the November midterm elections. Bullion traded near $4,145 an ounce, recovering from a two-month low seen earlier this week, after Trump said the US was having "productive discussions" with Iran, without offering details.
Benchmark oil prices declined, though a hurricane threatening production in the Gulf of Mexico kept risks elevated. Trump's remarks came even as Iran ramped up attacks on tankers in the Strait of Hormuz this week, raising fresh concerns over a war now in its eighth month. Rising energy costs have renewed inflation worries, prompting some central banks to tighten monetary policy and weighing on the non-yielding precious metal.
Traders expect US borrowing costs to stay unchanged later this month but rise over the medium term. Federal Reserve Bank of St. Louis President Alberto Musalem signaled on Thursday that interest rates should increase over the next six to nine months to help inflation return to the central bank's 2% target, but stopped short of endorsing a move at this month's policy meeting.
Gold was 0.3% higher at $4,144.05 an ounce as of 8:00 a.m. Singapore time, while silver rose 0.6% to $59.54 an ounce after falling 1% in the earlier session. Platinum and palladium edged higher, and the Bloomberg Dollar Spot Index was little changed.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing