Gold eased on Wednesday to its lowest level in nearly a week, as U.S. strikes on Iran boosted oil prices and the dollar, raising concerns that inflation could keep interest rates higher for longer and weigh on non-yielding bullion.FUNDAMENTALSSpot gold fell 0.1% to $4,100.32 per ounce by 0107 GMT, after dropping to its lowest since July 2 earlier in the day. U.S. gold futures for August delivery shed 1.1% to $4,112.50.The U.S. military unleashed a new wave of strikes against Iran on Tuesday and revoked a licence allowing the country to sell oil after three tankers were hit by projectiles in the Strait of Hormuz, putting pressure on an already fragile ceasefire.U.S. oil prices jumped nearly 3% in early trade, extending the previous session's gains, while the U.S. dollar clung to its highest levels of the week against most of its peers. [O/R] [FRX/]Markets have increased their bets for a September Federal Reserve rate hike to over 67% chance, up from about 57% on Tuesday, the CME FedWatch tool showed. [FEDWATCH/]Investors also awaited minutes of the Federal Open Market Committee's June 16-17 meeting, due later on Wednesday, for fresh clues on the interest rate path under new Fed Chair Kevin Warsh.While gold is seen as an inflation hedge, high interest rates tend to weigh on the non-yielding asset. U.S. consumers grew more concerned about near-term inflation pressures in June, a New York Fed report showed on Tuesday.China's central bank reported its biggest monthly increase in gold reserves in more than two-and-a-half years in June, official data showed on Tuesday, although bullion prices tumbled.Beijing and Hong Kong authorities unveiled a range of measures to bolster currency, bond and gold trading in Hong Kong. Hong Kong launched a central clearing system for gold on Tuesday and revived dollar gold futures trading. It is also looking at introducing yuan-denominated gold futures as it seeks to become a regional reserve hub for the precious metal.Elsewhere, spot silver fell 0.3% to $59.82 per ounce, platinum slipped 1.2% to $1,620.38 and palladium dropped 1.6% to $1,256.25.
Gold eases as fresh US-Iran tensions lift oil prices, rate-hike bets
Gold prices fell to a near-weekly low as U.S. strikes on Iran boosted oil and the dollar. Higher interest rate expectations are pressuring the non-yielding precious metal. China's central bank reported its largest monthly gold reserve increase in over two years. Hong Kong authorities unveiled measures to bolster currency and gold trading. Other precious metals like silver, platinum, and palladium also experienced declines.







