Gold set for fourth monthly fall on bets of Fed rate hikes

Gold fell over 1% on Tuesday and was set for a fourth straight monthly decline, as uncertainty in the Middle East gave ​way to expectations of US interest rate hikes to tame ‌inflation.

Spot gold declined 1.5% to $3,957.74 per ounce by 0112 GMT and was set for a monthly fall of 12.7%.

US gold futures for August delivery ​lost 1.7% to $3,971.60.

The US dollar was headed for a monthly ​gain, making bullion more expensive for holders of other currencies.

⁠Iranian and US negotiating teams were due to meet in Doha this ​week, but Iran said on Monday no meeting had been scheduled as ​weekend missile fire from both sides tested the interim ceasefire to end the four-month-old war.

The US Supreme Court refused on Monday to let Donald Trump fire ​Federal Reserve Governor Lisa Cook as it stood firm to preserve the central ​bank’s cherished independence against an unprecedented challenge by the Republican president.

Traders expect three ‌Fed ⁠interest rate hikes this year, and are currently pricing in about a 63% chance of a September increase, according to the CME FedWatch Tool.

Investors are now awaiting the June ADP employment and nonfarm payroll data, ​both due this week, ​to further ⁠gauge the Fed’s stance on rate hikes.

Guinea aims to become a regional gold refining hub, its mines ​minister said, joining a broader push by West African producers ​to process ⁠bullion locally rather than exporting it to the Middle East and beyond.

Spot silver fell 2.4% to $56.89 per ounce, platinum lost 1.1% to $1,557.08, while ⁠palladium slid ​0.5% to $1,207. All three metals were headed ​for monthly losses.