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16.07.202602:32:40UTC+00Gold Slips as Middle East Attacks Weigh

Gold retreated toward $4,000 an ounce on Thursday, resuming its slide as intensifying attacks in the Middle East drove oil prices sharply higher this week, reigniting worries about inflation and the path of interest rates. The US carried out further strikes on Iranian targets on Wednesday, although President Donald Trump said Tehran had signaled a willingness to return to the negotiating table.

Even so, the precious metal drew some support from softer US inflation readings, which tempered fears of an imminent Federal Reserve rate hike. Data released on Wednesday showed US producer prices unexpectedly declined in June for the first time in nearly a year, largely reflecting lower energy costs and following Tuesday’s weaker-than-anticipated consumer inflation report.

However, June’s inflation data did not capture the impact of the latest escalation in the US–Iran confrontation, as last month’s interim peace agreement has effectively collapsed.

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