Gold rises as oil prices ease amid Middle East truce
Spot gold rose 0.4% to $4,345.71 per ounce on Tuesday as easing tensions between Israel and Iran helped lower crude oil prices. Investors are now awaiting May U.S. consumer price index data to gauge the Federal Reserve's interest rate path amid expectations that cuts may be delayed until 2027.
Gold rose 0.4% to $4,345.71 per ounce on Tuesday morning as softer oil prices supported the precious metal. Prices recovered after hitting a two-month low in the previous session. Lower energy costs reduce immediate inflation pressure, but the prospect of higher interest rates continues to weigh on the non-yielding asset.
Tim Waterer, chief market analyst at KCM Trade, said the easing of tensions between Israel and Iran helped stabilize oil prices. U.S. gold futures for August delivery also gained 0.2% to reach $4,370.80.
