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Gold Opens at $4,074 as Inflation Worries and Iran War Clash
Gold opens at $4,074.60, down 1.9%, as inflation fears and Iran war tensions pull the metal in opposite directions. Houthi attacks on Saudi tankers add safe-haven bid.
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Gold August futures opened at $4,074.60 per troy ounce Thursday, down 1.9% from Wednesday's close above $4,100. The metal edged up to $4,086.60 by 8:08 a.m. ET, traders said, as two opposing forces kept it in a tight range.
Investors are weighing the threat of higher U.S. interest rates against the safe-haven pull from the Iran war and widening Middle East instability. The House of Representatives approved up to $95 billion in funding Wednesday for the war, farm aid, and parts of the SAVE America Act. The bill still needs Senate approval. The vote signaled continued U.S. support for operations in the region, where Yemen's Houthi rebels have begun targeting Saudi Arabian oil tankers in the Bab el-Mandeb Strait.
The Houthi attacks threaten to disrupt a second critical shipping lane, adding to supply-side uncertainty that normally supports gold. Higher rates, by contrast, tend to weigh on the metal by raising the opportunity cost of holding non-yielding assets.