[BENGALURU] Gold prices inched higher on Monday (Jun 23) as investors turned to safe-haven assets amid growing fears of a broader Middle East conflict, with markets closely watching for Iran’s response to US attacks on its nuclear sites.
Spot gold was up 0.1 per cent at US$3,371.30 an ounce, as at 0020 GMT. US gold futures were steady at US$3,387.20.
The world braced on Sunday for Iran’s response after the US attacked key Iranian nuclear sites, joining Israel in the biggest Western military action against the Islamic Republic since its 1979 revolution.
In a televised address, US President Donald Trump warned Iran against retaliating, stating that any response would trigger further attacks unless Iran agreed to pursue peace.
Tehran vowed retaliation, with missile exchanges between Iran and Israel continuing over the weekend. Israeli fighter jets struck military sites in western Iran, according to officials, while Iranian missiles wounded scores of people and flattened buildings in Tel Aviv.
Meanwhile, the close split at the US Federal Reserve over whether to keep hedging against inflation risks or move forward faster with rate cuts came through on Friday in the first public comments from policymakers following a decision this week to hold borrowing costs steady for now.
The Fed’s latest Monetary Policy Report to Congress, released on Friday, said that US inflation remains somewhat elevated and the labour market is solid. However, it suggested that the full impact of Trump’s tariffs is likely yet to be felt, reiterating the Fed’s stance that it can wait for greater clarity before making policy moves.
On Friday, Trump once again floated the idea of firing Fed chair Jerome Powell, whom he has long criticised for not lowering interest rates as much as he wants.
Elsewhere, spot silver was up 0.1 per cent at US$36.03 per ounce, platinum fell 0.3 per cent to US$1,260.78, while palladium edged down 0.1 per cent to US$1,043. REUTERS
