Gold slips as Fed rate-hike expectations buoy dollar

Gold extended losses on Wednesday, as bets on US interest rate hikes lifted the dollar, while investors assessed ​conflicting signals on the US-Iran peace talks.

Spot gold ‌fell 0.5% to $4,087.68 per ounce by 0116 GMT, hitting its lowest level since June 11. U.S. gold futures for August delivery declined 1.1% ​to $4,105.40.

The dollar hit a more than one-year high, ​making bullion more expensive for overseas buyers.

US President ⁠Donald Trump said on Tuesday that Iran had agreed ​to nuclear inspections into “infinity,” while Tehran said it had made no such ​concession in negotiations, raising questions about the viability of their fragile peace deal.

Traders are pricing in three interest rate hikes from the ​US Federal Reserve this year, according to the CME FedWatch ​Tool.

Investors await the U.S. Personal Consumption Expenditures data, the Fed’s preferred ‌inflation ⁠gauge, due on Thursday, for further cues on monetary policy.

Dubai’s commodities exchange will launch a same-day settlement gold contract, its CEO told Reuters, aiming to tap safe-haven demand and faster ​trading infrastructure to ​boost liquidity in ⁠the emirate’s bullion market.

Ghana’s Gold Board is aligning its gold pricing regime with internationally recognised ​LBMA benchmarks from July 1 while imposing strict ​caps ⁠on purchase prices to tighten market discipline and curb irregular trading, it said on Tuesday.

Spot silver fell 1.1% to $61.36 per ⁠ounce, ​platinum lost 0.9% to $1,637.34, and palladium ​was down 1.2% at $1,223.29.