Gold firms on softer dollar, inflation data and Mideast risks in focus

Business Recorder reported that prices of gold edged higher on Wednesday, helped by a subdued dollar that made bullion cheaper for buyers using other currencies. Spot gold rose 0.6% to $4,381.32 per ounce by 0505 GMT, while US gold futures dropped 0.3% to $4,424.70. Investors were also weighing renewed US-Iran tensions and upcoming inflation data that bear on the interest-rate outlook.

The Revolutionary Guard of Iran announced that it launched ballistic missiles toward a Jordanian base used by American forces and struck 10 ships. The escalation came after Washington reported destroying five Iranian oil tankers, marking a sharp turn in a conflict now six months old. Brent crude extended its gains to a fourth straight session, and higher energy costs tend to feed into wider inflation. CME FedWatch data show traders put roughly a 60% chance on a Federal Reserve rate increase at its next policy meeting.

OANDA's Kelvin Wong expects choppy trading until the consumer price report comes out at week's end, while high rates weigh on bullion that pays no interest. Silver advanced 0.9% to $66.31, whereas platinum gained 1.1% to $1,833.58 and palladium lost 0.1% to $1,347.82. Alpine Macro's Kelly Xu called the near-term outlook a test for precious metals but said a major selloff was unlikely, linking silver's longer-term support to tight physical supply and inflexible mine output.