June 23 (Reuters) - Gold prices inched higher on Monday
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 U.S. attacks on its nuclear sites.
FUNDAMENTALS
* Spot gold was up 0.1% at $3,371.30 an ounce, as of
0020 GMT. U.S. gold futures were steady at $3,387.20.
* The world braced on Sunday for Iran's response after the
U.S. 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, U.S. 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 U.S. 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 U.S. inflation remains somewhat
elevated and the labor 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 criticized for not
lowering interest rates as much as he wants.
* Elsewhere, spot silver was up 0.1% at $36.03 per
ounce, platinum fell 0.3% to $1,260.78, while palladium
edged down 0.1% to $1,043.
DATA/EVENTS (GMT)
0030 Japan JibunBK Comp Op, SVC PMI, Mfg PMI Flash SA
June
0715 France HCOB Mfg, Services, Composite Flash PMI
June
0730 Germany HCOB Mfg, Services, Composite Flash PMI
June
0800 EU HCOB Mfg, Services, Composite Flash PMI June
0830 UK Flash Composite, Manufacturing, Services PMI
June
1345 US S&P Global Mfg, Services, Comp PMI Flash June
1400 US Existing Home Sales May
(Reporting by Anmol Choubey in Bengaluru; Editing by Sherry
Jacob-Phillips)
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