Gold Moves Higher Early; Dollar, Yields Steady Even as Oil Rises on Renewed Middle East Fighting

Gold traded higher early on Thursday but remains rangebound as inflation worries again heightened with oil prices rising on renewed fighting between Iran and the U.S. Gold for August delivery was last seen up $32.70, or 0.8% to $4,115.10 per ounce. The price of the metal has hovered above the $4,000 mark for the past two weeks, staying well under its Jan. 29 record high of $5,354.90 as the high oil prices that followed the US war on Iran boost inflation, raising concerns central banks will need to lift interest rates. Oil rose on Thursday as the U.S. and Iran traded strikes after President Trump declared that the ceasefire reached last month between the two countries was over. "Crude oil reclaimed its role as a central driver of cross-asset pricing amid renewed U.S.-Iran tensions. Higher oil prices revived inflation and rate concerns, lifting yields and reinforcing pressure on non-yielding metals," Saxo Bank wrote. The dollar was steady, with the ICE dollar index last seen unchanged at 100.99 points. Treasury yields were mixed. The yield on the US two-year note was down 3.2 basis points to 4.197%, while the 10-year note was steady at 4.576%.