Gold Falls as Markets Remain Weighed
Gold prices weakened as market participants assessed progress in diplomatic efforts to end the US-Iran war, while the Strait of Hormuz remained largely closed to shipping and energy supply disruptions were anticipated.
Bullion briefly fell as much as 1.4% to below US$4,620 per troy ounce. Iran was said to be open to a temporary deal to reopen the waterway in exchange for an end to the US blockade of Iranian ports, but President Donald Trump and his national security team were reportedly skeptical. Meanwhile, the oil rally continued.
Energy supply shocks during the eight-week conflict have added to inflation risks, raising the possibility of central banks holding interest rates longer or even considering hikes, which is a drag on gold as a non-yielding asset. Since the conflict began in late February, gold has fallen about 12%.
This week, market attention is also focused on interest rate decisions in the US, the European Union, the UK, and Canada. The Bank of Japan previously held rates at 0.75% in a split vote, which is seen as increasing the likelihood of a June hike.
At 10:18 London time, the spot price of gold fell 1.2% to US$4,624.20 per troy ounce, while the Bloomberg dollar index rose 0.2%. Silver fell 2.8% to US$73.39, with platinum and palladium also lower, signaling widespread pressure in the precious metals. (asd)*
Sumber: Newsmaker.id
