Gold Resurfaces at US$4,500, But Not Yet Safe
Gold prices strengthened during the Asian session on Tuesday (June 2nd), returning above the psychological level of US$4,500 per ounce. This increase occurred after the US dollar lost some steam as market concerns about a broader conflict in the Middle East eased.
Positive sentiment for gold came from news of a limited ceasefire between Israel and Hezbollah. US President Donald Trump stated that Israel had agreed to withdraw troops that were preparing to attack Beirut and the surrounding area. Hezbollah also reportedly committed to refraining from attacking Israel through indirect communications.
However, gold's gains remained limited. The market remains uncertain as peace negotiations between the United States and Iran remain unclear. Iran had signaled it would halt talks following the latest attack in Lebanon, while Trump maintained that negotiations were ongoing and that an agreement to reopen the Strait of Hormuz could be reached soon.
Market focus now shifts to US economic data, particularly the Nonfarm Payrolls (NFP) report due to be released on Friday. This data has the potential to determine the direction of the dollar, Fed interest rate expectations, and the next movement in gold. As long as energy inflation remains high and the possibility of interest rate hikes remains open, gold will not be completely out of the woods. (asd)*
Source: Newsmaker.id
