Gold Steady Amid Israel-Iran Ceasefire Agreement
Gold prices held steady on Tuesday after Israel and Iran agreed to halt attacks that had previously threatened negotiations to end the Middle East war. Spot gold traded around $4,331 per ounce, after the previous session's close showed little change. The ceasefire agreement follows US President Donald Trump's call for a de-escalation of the conflict that has shaken global markets.
While the ceasefire offers some relief, uncertainty in the Strait of Hormuz continues to weigh on energy markets. Disruptions in oil flows have fueled concerns about global inflation, prompting central banks to maintain or raise interest rates—a factor that weighs on the precious metal. Gold itself has lost about 18% since the start of the conflict, and this year's gains were briefly erased after a strong US jobs report fueled speculation of a Federal Reserve rate hike.
Citigroup Inc. lowered its three-month gold price target to $4,000 per ounce from $4,300, although it maintained its long-term bullish outlook with a six- to 12-month target of $5,000 per ounce. Citi analysts called gold risky for short-term investors without a clear stop-loss strategy.
Other precious metals also showed positive trends. Silver rose 0.7% to $68.64 per ounce, while platinum and palladium each recorded gains. The Bloomberg Dollar Spot Index, which measures the strength of the US dollar, fell slightly by 0.1%, helping to cushion the pressure on precious metals.
Investors now remain wary of further developments in the Middle East, particularly whether the ceasefire agreement will hold and how it will impact energy prices and global monetary policy decisions.
5 Key Takeaways
-Gold held steady around $4,331/ounce after Israel and Iran agreed to a ceasefire.
-Disruptions to oil flows in the Strait of Hormuz weighed on precious metal prices and raised inflation concerns.
-Gold has fallen about 18% since the start of the conflict; this year's gains were briefly erased after the US jobs report.
-Citigroup lowered its three-month gold price target to $4,000/ounce, but maintained its long-term target of $5,000/ounce.
-Silver, platinum, and palladium strengthened, while the US dollar weakened slightly by 0.1%, supporting precious metals. (gn)
Source: Newsmaker.id
