Gold Set For Strongest Weekly Gain Since January As Fed Hike Bets Ease

(RTTNews) - Gold climbed above $4,300 an ounce on Friday and was set for its biggest weekly gain since January on hopes of peace in the Middle East, eased inflation concerns and reduced expectations for a Federal Reserve rate hike in September.

Spot gold jumped 1.8 percent to $4,316.95 an ounce and was up more than 6 percent for the week, after hitting a seven-week high on Thursday. U.S. gold futures were up 1.9 percent at $4,377.57 an ounce.

The dollar was little changed but headed for a weekly gain against major peers amid a resurgence in geopolitical and trade tensions.

Iran reportedly struck "hostile targets" in the Strait of Hormuz and said a deal with Oman to manage traffic through the waterway will not fully reopen the vital global trade route, raising fresh concerns over global oil supplies.

Iran said it would bar U.S., Israeli and other "hostile" vessels from transiting the Strait of Hormuz.

It was said that the draft bill, which seeks to impose fines of up to 20 percent of a ship's cargo value for violations of the proposed restrictions, remains under expert review and is open to recommendations before any legislative action is taken.

Despite conflicting account of discussions, U.S. President Donald Trump said in the Oval Office that the war with Iran will end "pretty soon."

Meanwhile, with several Fed officials sending hawkish signals, investors await the monthly U.S. jobs report later in the day for additional clues on the economic and rate outlook.

The Labor Department's closely watched report may show that U.S. employment jumped by 88,000 jobs in July after an increase of 57,000 jobs in June.

In prepared remarks at the Center for Public Policy Debate in Brazil, St. Louis Fed President Alberto Musalem said Thursday that it would be a mistake for the Federal Reserve to tolerate elevated inflation in pursuit of higher productivity growth.

On the trade front, the Trump administration has paid back $100bn in "Liberation Day" tariff refunds to business through customs officials, representing roughly 60 percent of all tariff revenue collected by the government under the policy, according to a recent court filing from U.S. Customs and Border Protection.

Solar cells and modules shipped to the United States will now face an additional 15 percent tariff from December 4 under a new trade measure signed by President Trump.