Gold Steady After Trump Hints Iran War Nearing End
Gold prices held steady after the US dollar weakened following comments by US President Donald Trump suggesting the Iran war could soon end. Bullion held around US$5,135 per troy ounce, after falling 0.6% in the previous session.
Trump told CBS News that the conflict was "very much over, more or less." Following the statement, the dollar index fell about 0.2%, reversing earlier gains. Meanwhile, oil prices corrected after a highly volatile session, easing some of the inflationary pressures that had previously weighed on the market.
Gold has been under pressure since the Middle East conflict erupted as surging energy prices fueled inflation concerns. This has led markets to expect the Federal Reserve and other central banks to hold interest rates for longer, or even raise them, which is typically a drag on non-yielding assets like gold.
Despite this, gold has still posted a gain of nearly a fifth so far this year. Demand for safe haven assets remains supported by global trade and geopolitical uncertainty, while gold also serves as a source of liquidity when global equity markets are under pressure.
At 6:15 a.m. Singapore time, spot gold edged down 0.1% to US$5,135.95 per ounce. Silver rose 0.1% to US$86.99. Platinum weakened slightly, while palladium strengthened. (yds)
Source: Newsmaker.id
