Gold Edges Up Amid Middle East Tensions, Fed Meeting Looms
Gold prices rose on Friday, putting it on track for its first weekly gain in three weeks. The metal's value increased by 0.4% to $4,063.78 an ounce, with futures also gaining 0.4%. This move comes as investors weigh the impact of Middle East tensions and potential inflationary pressures ahead of next week's Federal Reserve policy meeting.
The U.S. military conducted its 13th round of strikes against Iranian targets on Friday, targeting drone storage sites and coastal surveillance posts in an effort to disrupt Tehran's ability to launch attacks at commercial vessels in the Strait of Hormuz.
Iran has rejected a U.S.-backed ceasefire proposal delivered by Iraqi Prime Minister Ali al-Zaidi, according to The New York Times. The proposal was reportedly the only one currently under consideration, but Tehran said it would not accept a temporary deal that left unresolved control over the Strait of Hormuz.
Oil prices have risen due to concerns about crude supply disruptions in key waterways, with Brent oil briefly reaching $100 a barrel for the first time since May. This surge has sparked worries about inflation and potential interest rate hikes, which could negatively impact gold's value as a non-yielding asset.