June 11 (Reuters) - Gold hit a more than six-month low on
Thursday, as fresh U.S. strikes on Iran drove oil prices higher,
deepening concerns around inflation and higher-for-longer
interest rates.
FUNDAMENTALS
* Spot gold was down 0.2% at $4,063.87 per ounce, as
of 0043 GMT, after hitting its lowest level since November 21
earlier in the day.
* U.S. gold futures for August delivery were down
1.1% at $4,086.50.
* The United States began a fresh round of strikes against
multiple targets overnight in Iran, the U.S. military said on
Wednesday, hours after President Donald Trump vowed new attacks
if no peace deal is secured.
* Oil prices climbed more than $2 on Thursday, as Iran
declared the closure of the Strait of Hormuz following the U.S.
strikes.
* Elevated crude oil prices can accelerate inflation, and
while gold is seen as a hedge against inflation, higher interest
rates tend to weigh on the non-yielding metal.
* Data showed that U.S. consumer inflation increased at its
fastest pace in three years in May, boosted by surging prices
for energy products amid the Middle East conflict, and giving
more ammunition for the Federal Reserve to keep interest rates
unchanged into 2027.
* Markets are awaiting the May U.S. Producer Price Index
data, due later in the day, to further assess the Fed's monetary
policy stance.
* Ivory Coast's gold output is expected to reach 62 metric
tons in 2026, up from 59.33 tons in 2025, as established mines
expand operations, the West African country's director general
of mines told Reuters.
* Spot silver fell 0.9% to $63.15 per ounce, platinum
lost 0.6% to $1,655.06, while palladium gained 1%
to $1,225.25.
DATA/EVENTS (GMT)
1215 EU ECB Refinancing, deposit Rate Jun
1230 US Initial Jobless Clm Jun 6, w/e
1230 US PPI Machine Manuf'ing May
(Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu
Sahu)
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