Gold Steady, Market Focuses on US-Iran Deal Prospects
Gold prices (XAU/USD) moved steadily on Friday, holding around $4,807 per ounce, up about 0.35% on the day. The precious metal remains on track for its fourth consecutive weekly gain, but its movement is likely limited as the market weighs diplomatic optimism against the diminishing demand for safe havens.
Sentiment improved after US President Donald Trump stated that the chances of a deal with Iran look "very good" and said the next round of talks could take place over the weekend. Trump also indicated his readiness to consider extending the current ceasefire if the two sides are deemed close to reaching an agreement.
However, risk-on sentiment has limited gold's upside. The prospect of regional de-escalation—including the 10-day Israel-Lebanon ceasefire—has boosted global risk assets, so inflows into gold are not entirely dominant, even though geopolitical uncertainty remains.
The weakening dollar has been the main support holding back gold's decline. The dollar index (DXY) hovered around 98.13, nearing a more than one-month low and heading for a third consecutive weekly decline, making gold relatively cheaper for holders of other currencies.
On the monetary policy front, the market is reassessing the chances of a Fed rate cut as the energy risk premium has eased some as oil prices weakened on hopes the Iran conflict is nearing an end. The focus will now be on weekend developments related to US-Iran talks—particularly any signs of a recovery in energy flows through the still-disrupted Strait of Hormuz—as well as speeches by Fed officials ahead of the blackout period leading up to the April 28-29 FOMC meeting. (gn)
Source: Newsmaker.id
