Gold Stuck Below 4-Week Peak, Market Awaits US-Iran Signals
Spot gold prices moved within a limited range during the US session on Thursday (April 16), holding around US$4,796/oz, up 0.12% from the previous close, after briefly reaching a daily range of US$4,838/oz.
Gold's recent gains have begun to lose steam as the US dollar attempted a modest recovery amid uncertainty surrounding the Strait of Hormuz and threats of retaliation from Iran. At the same time, diplomatic optimism remains alive: Washington calls communications with Tehran "productive," while signals from mediators point to a possible extension of the ceasefire to allow further negotiations, although the nuclear issue remains the most stubborn point of contention.
Fundamentally, gold's direction remains driven by two forces. The Hormuz tensions are keeping energy-based inflation risks at bay, which tend to temper expectations of interest rate easing. However, easing bets on a Fed rate hike and declining inflationary pressures from recent data have helped limit the dollar's rebound, keeping gold's decline modest.
For intraday movements, the market tends to remain headline-driven. Key variables being monitored are updates to US-Iran negotiations (including the option of extending the ceasefire), developments in the Hormuz Passage rules/tariffs, and the response of the dollar and US yields, which have determined gold's range over the past few weeks. (Arl)*
Source: Newsmaker.id
