-- Gold moved lower early Wednesday as the dollar edged higher, keeping the price of the precious metal rangebound amid faltering hopes for lower U.S. interest rates as the war on Iran pushes up energy prices. Gold for May delivery was last seen down $15.50 to US$4,834.60 per ounce.
The metal has been trading in a narrow range for the past three weeks, as its reputation as a store of value falters with the war on Iran keeping 20% of daily oil demand from the market, raising prices and threatening to boost inflation and raise interest rates, bearish for a commodity that pays no interest. "A sustained breakout likely depends on further constructive developments in the Middle East," Saxo Bank noted.
The dollar edged higher early, with the ICE dollar index last seen up 0.06 points to 98.18. Treasury yields rose, with the U.S. two-year note last seen paying 3.768%, up 1.1 basis points, while the yield on the 10-year note was up 1.8 points to 4.272%.