Trump Optimistic, Gold on Track for Fourth Week of Gains
Gold prices moved within limits in European trading on Friday (April 17), still trending toward a fourth weekly gain after US President Donald Trump reiterated optimism about reaching a permanent ceasefire agreement with Iran. Spot gold last edged up 0.1% to US$4,795.91/oz, but still recorded a gain of around 0.9% for the week.
Market optimism was also supported by easing energy prices from the peak of the conflict, which helped ease inflation concerns and ease the "higher for longer" pressure. However, the path to peace is not considered straightforward: some Gulf and European leaders estimate that establishing a peace agreement could take months, while the Strait of Hormuz and shipping access mechanisms remain key points of contention.
On the monetary policy front, market participants remain recalculating: if energy prices heat up again, central banks could hold off on interest rate cuts for longer—a condition that typically limits gold, as it offers no yield. Conversely, the weakening dollar this week and falling real yields provide a cushion, especially when speculative positions are still considered "light," reducing the risk of liquidation and opening up room for repurchases as momentum improves.
Today's market watchlists: further headlines on Hormuz (blockade/passage costs/shipping flows), oil's direction, the movement of the dollar and US yields, and signals from Fed officials regarding the balance of inflation versus growth risks. (Arl)*
Source: Newsmaker.id
