Gold Corrects Due to Dollar Pressure and Oil Spike!
Gold prices weakened on Thursday (April 23), pressured by a strengthening US dollar and a surge in oil prices that have rekindled concerns about energy-driven inflation amid escalating US-Iran tensions. Spot gold fell 1.1% to US$4,688.96/oz, while futures fell 1.0% to US$4,705.56/oz at 6:26 a.m. ET.
The decline briefly brought spot gold to US$4,694.23/oz, breaking below the US$4,700–US$4,900/oz range that has held for the past two weeks. Gold's movement is considered restrained as the market continues to assess the direction of the conflict and the likelihood of further negotiations.
Uncertainty increased after President Donald Trump extended the ceasefire indefinitely, but Tehran and Washington showed little sign of returning to the negotiating table. Iran is demanding the lifting of the US blockade as a precondition for talks, while the US is demanding the full opening of the Strait of Hormuz, which remains blocked by Iran amid US maritime surveillance in the region.
In energy markets, oil prices surged again above US$103/barrel this week amid concerns about supply disruptions in the Strait of Hormuz, a narrow waterway reportedly through which about a fifth of global oil trade passes. This surge has reignited the "energy shock" narrative that could prompt central banks to consider raising interest rates, a situation that generally discourages non-yielding assets like gold.
Additional pressure comes from a strengthening US dollar, which is headed for its first weekly gain in a month, making gold more expensive for non-US buyers. Correspondingly, other precious metals also suffered: spot silver fell 4.3% to US$74.3705/oz, while spot platinum weakened 3.5% to US$2,005.92/oz. (gn)*
Source: Newsmaker.id
