June 29 (Reuters) - Gold prices slipped on Monday as renewed
U.S.-Iran hostilities pushed oil prices higher, while
expectations of U.S. Federal Reserve interest rate hikes further
weighed on the metal.
FUNDAMENTALS
* Spot gold was down 0.5% at $4,067.99 per ounce, as
of 0045 GMT. U.S. gold futures for August delivery lost
0.4% to $4,081.20.
* Iran launched missiles and drones at U.S. military sites
in Kuwait and Bahrain early on Sunday, shortly after U.S.
President Donald Trump threatened to wipe out the Iranian
leadership if they did not stick to the agreement to end their
war.
* However, Tehran and Washington agreed to halt recent
hostilities in the Gulf and renew talks regarding their dispute
over the Strait of Hormuz, Axios reported on Sunday.
* Oil prices rose on Monday following days of tit-for-tat
strikes by the United States and Iran in the Middle East that
underscored the fragility of their interim peace deal and again
slowed energy shipping in the Strait of Hormuz.
* Data on Thursday showed that U.S. inflation accelerated in
May, breaking above 4.0% for the first time in three years as
the Middle East conflict boosted energy prices.
* Traders expect three Fed rate hikes this year and are
pricing in an about 77% chance of a December increase, according
to the CME FedWatch Tool.
* Gold started trading at a premium in India last week for
the first time in a month and a half, as a price correction
lifted buying, while demand stayed subdued in top consumer
China.
* Gold speculators raised net long positions by 91 contracts
to 113,010 in the week ended June 23.
* Spot silver fell 1.1% to $58.49 per ounce, platinum
gained 0.4% to $1,620.15, while palladium lost
0.4% at $1,204.25.
DATA/EVENTS (GMT)
0900 EU Consumer Confid. Final June
(Reporting by Pablo Sinha in Bengaluru; Editing by Sherry
Jacob-Phillips)
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