Gold (GLD) moved back above $4,000 an ounce as investors weighed the Federal Reserve's next policy signals, fresh inflation concerns, and progress in US-Iran talks. Spot gold rose 0.6% to about $4,030 an ounce after briefly falling below $4,000 earlier in the session, its lowest level since November.
The move comes as traders look for direction from Fed Chair Kevin Warsh, who is scheduled to speak at the European Central Bank's annual symposium in Sintra, Portugal. Cleveland Fed President Beth Hammack said interest rates may need to rise to bring inflation back toward the Fed's 2% target, while National Economic Council Director Kevin Hassett warned on Fox Business that a rate hike would be a macroeconomic mistake.
Gold remains under pressure after falling 14% in the second quarter, its weakest performance since 2013. Higher borrowing costs could continue to weigh on non-yielding metals, while US-Iran technical talks are moving ahead after positive discussions in Qatar involving Jared Kushner and Steve Witkoff. The metal is also facing a possible technical warning after its 200-day moving average recently dropped below its 50-day moving average, a pattern some investors view as a sign of a longer-term downtrend.