Gold falls as traders weigh U.S.-Iran talk progress

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsEconomyGold falls as traders weigh U.S.-Iran talk progressHigher rates and a stronger greenback are negative for gold as it pays no interest and is priced in the U.S. currencyAuthor of the article:Last updated 14 minutes ago Gold has been dictated by the Fed’s rate outlook recently as investors assess whether elevated energy prices will keep inflationary pressure strong enough to prompt further Fed rate increases. Photo by Brendon Thorne/BloombergGold fell as traders monitored progress in talks between the United States and Iran and comments by Federal Reserve officials for clues on how energy costs will influence the path forward for interest rates.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBullion dropped to trade below US$4,300 a ounce, while a gauge of the U.S. dollar rose to the highest since July. Several Fed policymakers have voiced concerns about the outlook for inflation since the central bank hiked rates last week for the first time in three years. Higher rates and a stronger greenback are negative for gold as it pays no interest and is priced in the U.S. currency.Brent crude snapped five days of declines as investors tracked a renewed focus on diplomatic efforts to end the U.S.-Iran war. President Donald Trump flagged progress in U.S. talks with Iran. The discussions were the first between the two countries since around mid-June, shortly after the signing of a short-lived truce.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againMeanwhile, Fed Governor Michael Barr said further interest rate increases are likely needed to return inflation to the central bank’s two per cent target.Gold has been dictated by the Fed’s rate outlook in recent weeks as investors assess whether elevated energy prices will keep inflationary pressure strong enough to prompt further Fed rate increases.Separately, the latest data showed U.S. business activity rose at the fastest pace in more than five years as robust demand pushed up new orders and employment at manufacturers and service providers.Spot gold fell 1.6 per cent to US$4,290.54 an ounce at 11:18 a.m. in New York. Silver declined 3.5 per cent to US$64.7231 an ounce. Platinum and palladium were also lower. The Bloomberg Dollar Spot Index, a gauge of the U.S. currency, was 0.5 per cent higher.—With assistance from Yihui Xie and Jack Ryan.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.