Gold Rebounds, Dollar Under Pressure Amid Signals of Iran Talks
Gold prices rose more than 1% on Tuesday (April 14), rebounding from a near-week low in the previous session, as the dollar weakened and inflation concerns eased after oil prices corrected. Spot gold rose 1.1% to US$4,788.76/oz at 09:21 GMT, while US gold futures rose 1.0% to US$4,812.80/oz.
The recovery came as the market reassessed the possibility of a US-Iran diplomatic pathway reopening, after five sources said negotiating teams from both countries could return to Islamabad this week. In the previous session, gold was under pressure as the US military prepared to begin a blockade of Iranian ports, raising the risk of a fragile two-week ceasefire. The dollar fell to its lowest level in more than a month, making USD-denominated gold cheaper for holders of other currencies, while oil prices fell in Asian trade as concerns about supply risks eased.
While gold is seen as a hedge against inflation and geopolitical risks, its appeal could be tempered if expectations of high interest rates persist. Market participants currently assess the chance of a 25 bps US interest rate cut this year at 31% (up from 27% the day before), although this is still far from pre-war expectations, which had projected two cuts. In other metals, silver rose 3.2% to US$77.98/oz, platinum rose 0.7% to US$2,084.90/oz, and palladium rose 0.6% to US$1,583.82/oz. (Arl)*
Source: Newsmaker.id
