Gold Strengthens on Weaker Dollar
Gold prices rebounded on Wednesday, supported by a weaker US dollar after President Donald Trump announced an extension of the ceasefire agreement with Iran, fueling cautious hopes that tensions in the Middle East could ease for a longer period.
At 6:07 a.m. ET (10:07 a.m. GMT), spot gold rose 0.7% to US$4,750.76 per ounce, while gold futures rose 1.1% to US$4,769.41 per ounce. This rise came after gold had endured pressure in the previous session.
The main driver for bullion came from a weaker US dollar, making gold relatively cheaper for foreign buyers. The dollar index, which measures the greenback against a basket of six currencies, fell 0.1%, helping support gold demand amid a market still sensitive to the direction of risk sentiment.
Meanwhile, the market remains closely monitoring signals on US monetary policy. Pressure on gold previously emerged after Federal Reserve Chair Kevin Warsh stated he would not promise Trump a rate cut if confirmed, keeping interest rate expectations a risk factor for the precious metal.
In a geopolitical context, the dollar reportedly surged in March as investors sought safe havens on the assumption that US energy exports could cushion the impact of oil supply disruptions in the Strait of Hormuz. However, the dollar has now returned to near pre-conflict levels, while some market participants believe the peak of tensions related to the Iran war may have passed—with analysts such as Michael Brown (Pepperstone) emphasizing that public statements from both sides are more about negotiating leverage than signaling a re-escalation. (gn)*
Source: Newsmaker.id
