Gold Steady, Markets Eye Iran Peace Proposal and Central Bank Agenda
Gold prices were limited as market participants weighed the latest efforts by the US and Iran to find a negotiated solution to the nearly two-month-old war. Bullion held around $4,690 per ounce in early trading after falling 0.6% on Monday (April 28).
The White House said US President Donald Trump held a meeting with national security officials to discuss Iran's latest peace proposal. White House spokeswoman Karoline Leavitt said the US remains committed to its "red lines" in any deal to end the conflict.
These discussions followed reports that Tehran proposed an interim deal, including the reopening of the Strait of Hormuz, as a counterbalance to warnings of a US blockade of shipping to and from Iranian ports. The proposal was also said to lead to more complex negotiations regarding Iran's nuclear program.
The standoff in the Strait of Hormuz has reduced shipping activity to near zero, hampering the flow of crude oil, natural gas, and petroleum products. For the market, any sign of a change in the status of this energy waterway is a key factor because it is directly linked to supply risks and the direction of inflation.
Beyond geopolitics, investors' focus this week will be on interest rate decisions by major central banks, including the Federal Reserve, the European Central Bank, and central banks in Japan, the UK, and Canada. Energy supply shocks during the eight-week conflict have heightened inflation risks, increasing the likelihood of interest rates remaining in place for longer or even rising. This presents a drag on gold, as it does not offer an unbalanced outcome; gold has fallen about 11% since the conflict began in late February.
In recent trading, spot gold edged up 0.1% to $4,687.31 per ounce (6:56 a.m. Singapore time). Silver rose 0.5% to $75.90, while platinum and palladium also strengthened. The Bloomberg Dollar Spot Index was flat after falling 0.1% on Monday, leaving gold's movements more influenced by diplomatic developments and interest rate policy expectations. (Asd)
Source: Newsmaker.id
