May 26 (Reuters) - Gold fell on Tuesday as fresh U.S.
attacks in Iran pushed oil prices higher, fuelling concerns
around inflation and higher-for-longer interest rates.
FUNDAMENTALS
* Spot gold was down 0.6% at $4,544.33 per ounce, as
of 0049 GMT. U.S. gold futures for June delivery gained
0.5% to $4,545.60.
* Iran's top negotiator and its foreign minister were in
Doha for talks with Qatar's prime minister on a potential deal
with the U.S. to end the three-month-old war, an official
briefed on the visit said on Monday, after Washington and Tehran
played down hopes for an imminent breakthrough.
* Even as the talks proceeded, U.S. forces on Monday
conducted strikes in southern Iran against targets including
boats attempting to lay mines and missile launch sites, in what
it described as defensive actions.
* Brent crude futures rose nearly 2% in early Asian trade on
Tuesday, as tensions between the U.S. and Iran persisted.
* Elevated crude oil prices can fuel inflation and keep
interest rates higher for longer. While gold is seen as a hedge
against inflation, higher rates tend to weigh on the
non-yielding metal.
* Markets are pricing in a U.S. Federal Reserve rate hike
before year-end, with a 54% chance of a move by December,
according to CME Group's FedWatch tool.
* Ghana's government is committed to renewing the mining
lease for Gold Fields' Tarkwa mine, it said on Monday, adding
that it will subject the South African miner to fresh scrutiny
of its plans before any renewal is granted.
* Spot silver fell 0.8% to $77.42 per ounce, platinum
lost 0.5% to $1,958.18, and palladium slid 0.6% to
$1,389.68.
DATA/EVENTS (GMT)
0500 Japan Leading Indicator Revised Mar
1400 US Consumer Confidence May
(Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu
Sahu)
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