Gold fell on Thursday as fresh U.S. attacks on Iran pushed oil prices higher, stoking concerns about rising inflation and clouding the interest rate outlook.
FUNDAMENTALS
* Spot gold was down 0.8% at $4,419.60 per ounce, as of 0129 GMT. U.S. gold futures for June delivery fell 0.7% at $4,417.10.
* The dollar rose, making greenback-priced bullion more expensive for holders of other currencies. [USD/]
* The U.S. military carried out new strikes in Iran targeting a military site that officials believed posed a threat to U.S. forces and commercial shipping in the Strait of Hormuz, a U.S. official said, hours after President Donald Trump dismissed an Iranian report of a deal to restore traffic through the strategic waterway.
* Oil prices rose about 2% in early Asian trade on Thursday, as tensions between the U.S. and Iran persisted. [O/R]
* Federal Reserve Governor Lisa Cook on Wednesday said she feels the U.S. central bank should hold short-term interest rates steady for now, but, with tariffs, the Iran war, and a surge in AI-related investment pushing prices higher, she is prepared to hike rates if needed.
Federal Reserve Vice Chair Philip Jefferson said on Wednesday that the current setting of monetary policy is in the right place amid ongoing upside risks to the inflation outlook.
* Investors await the release of U.S. Personal Consumption Expenditures data, due later in the day, for clues on the Fed's monetary policy path.
* Hong Kong Futures Exchange said on Wednesday that it would introduce a market-wide trading fee discount and incentive programmes for gold futures in a bid to boost liquidity and revitalise the contract.
* Spot silver fell 1.7% to $73.34 per ounce, platinum lost 0.5% to $1,909.15, and palladium slid 0.7% to $1,381.64.
DATA/EVENTS (GMT)
1230 US Core PCE Price Index MM, YY Apr
1230 US PCE Price Index MM, YY Apr
1230 US Durable Goods Apr
1230 US GDP 2nd Estimate Q1
1230 US Initial Jobless Clm May 23, w/e
1230 US Consumption, Adjusted MM Apr
