Gold Rises Slightly, Focus Remains on the Fed and Iran
Gold prices rose on Friday (May 29), supported by easing inflation concerns after reports of progress in US-Iran diplomacy weighed on oil prices. At 9:10 a.m. ET, spot gold rose 0.6% to US$4,524.40 per ounce, while gold futures rose 0.5% to US$4,555.01.
The day before, gold had touched a two-month low, but reversed losses and closed up 0.8% after reports emerged that the US and Iran would resume negotiations. On a weekly basis, gold has tended to move slightly higher, with price direction largely influenced by changing headlines related to the Middle East conflict.
Washington and Tehran reportedly reached a tentative agreement to extend a 60-day ceasefire and open shipping lanes through the Strait of Hormuz, although the proposal still awaits US President Donald Trump's approval and confirmation from Iran. Hopes for this de-escalation have lowered the energy risk premium, giving gold room to recover.
However, gold's safe-haven support is no longer as "automatic" as it used to be. Investors worry that high energy costs could trigger broader inflation and force the Fed to maintain its tighter policy. US PCE data for April showed inflation rose 3.8% year-on-year, the fastest pace in about three years, reinforcing expectations that high interest rates will persist well into next year.
Treasury yields did soften slightly following the data release, but remained near multi-month highs, limiting gold's potential for further rally. In other metals, silver edged down 0.1% to US$75.5685, and platinum fell 0.1% to US$1,921.35. In industrial markets, LME copper fell 0.2% to US$13,692 per tonne, while US copper futures fell 0.4% to US$6.40 per pound. (Arl)*
Source: Newsmaker.id
