Gold Rebounds as Dollar Weakens, Iran Risks Remain a Weakener
Gold prices rebounded on Thursday (April 30) after three sessions of decline, supported by a weaker US dollar amid speculation Japan would intervene in the currency market again to support the yen. Bullion briefly rose as much as 2.2% and returned to trading above US$4,600, while the Bloomberg Dollar Index weakened 0.8%—making gold cheaper for non-dollar buyers.
At the close of the New York session, spot gold rose 1.5% to US$4,618.07/oz. Silver strengthened 3.3% to US$73.65/oz, while palladium and platinum also rose. The gains came as markets weighed the risk of a new escalation in the US-Iran conflict, after President Donald Trump confirmed the naval blockade of Iranian ports remained in place and reports suggested US military commanders were briefing on next steps.
Despite the rebound, gold is still down nearly 13% since the outbreak of the war in late February as the energy boom heightened inflation risks and reinforced expectations of persistently high interest rates—conditions that typically weigh on non-yielding assets. However, medium-term support is coming from central bank demand: World Gold Council data shows central bank gold purchases in the first quarter were the fastest in more than a year, as a price correction triggered a wave of accumulation. (Arl)*
Source: Newsmaker.id
