Diplomacy Strengthens, Gold Remains Defensive
Gold prices held steady around US$4,820 per ounce on Wednesday (April 15), still near a one-month high, as investors weighed developments in US-Iran peace talks aimed at de-escalating the Middle East conflict. Mediation reportedly showed progress toward extending the ceasefire, with both sides reportedly agreeing in principle to resume negotiations covering Iran's nuclear program, the status of the Strait of Hormuz, and war compensation.
US President Donald Trump hinted that a deal could be near, but uncertainty remains high after the US announced plans to deploy approximately 10,000 additional military personnel to the region. This combination of diplomatic signals and the risk of escalation kept gold on the defensive: supported by hedging needs, but lacking the necessary leverage to break through its recent peak.
From a macro perspective, the dollar's weakness, which remains near a six-week low, also supported bullion. At the same time, the market held back expectations of further monetary policy tightening as the Federal Reserve adopted a cautious stance while assessing inflation risks. Although often viewed as an inflation hedge, gold has still fallen around 10% since the Iran conflict began, as higher interest rates have dampened the appeal of non-yielding assets.
The next market focus areas: the consistency of the ceasefire extension, details of the negotiation agenda (nuclear, Hormuz, compensation), developments on US troop deployments, the direction of the dollar, and changes in expectations for the Fed's interest rate. (Arl)*
Source: Newsmaker.id
