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FINWIRES

Gold Steady, Remaining Above $4,000 Despite Inflation Worries

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Gold was steady early Friday, sticking above the $4,000 mark even as the dollar rose.

Gold for August delivery was last seen down $1.90, or 0.1%, to $4,048.30 per ounce.

The price of the metal has found support at the $4,000 mark despite the inflation worries sparked by the high oil prices that followed the launch of the war on Iran. The price of the metal is down 22% since the US and Israel launched strikes on the country on Feb. 28, with investors turning to the dollar amid rate hike fears, bearish for gold since it offers no yield.

"Higher energy costs have revived the prospect of a Fed rate hike. Money markets now price roughly a 35% chance of an increase at next week's FOMC meeting, up from about 10% a week ago, with a hike fully priced by September," Saxo Bank noted.

The dollar edged up early, with the ICE dollar index last seen up 0.05 points to 101.49. Treasury yields edged lower, with the yield on the US two-year note last seen down 0.7 basis points to 4.348%, while the 10-year note was paying 4.688%, down 1.2 points.

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