Gold Falls, US$4,000 Level Becomes a Fortress
Gold prices fell on Monday (June 29th) after the US and Iran agreed to halt attacks on each other. This agreement came after a series of retaliatory attacks in the Middle East again tested the fragility of the ceasefire, which has been fueling global inflationary pressures.
Gold fell as much as 2.2% and approached US$4,000 per troy ounce, before paring some of its losses. US President Donald Trump said peace talks with Iran are scheduled to resume on Tuesday in Doha, Qatar.
Since the war began in late February, gold prices have fallen more than 23% and briefly fell below US$4,000 last week. The main pressure came from the surge in energy prices due to the war, which led the market to expect central banks to maintain high interest rates for longer. This is unfavorable for gold because the precious metal does not provide a yield.
However, gold's ability to hold above US$4,000 indicates that there are still buyers trying to defend that level. Analysts believe gold is becoming more resilient to Middle East turmoil, especially after much of this year's gains have been erased and short-term investors have begun to exit the market.
At 4:34 PM New York time, the spot gold price fell 1.8% to US$4,016.97 per troy ounce. Silver weakened 1.5% to US$58.29 per troy ounce, platinum also fell, while palladium strengthened. Meanwhile, the Bloomberg Dollar Index remained relatively stable, while investors continued to monitor US inflation data and the latest signals from the Federal Reserve. (arl)
Source: newsmaker.id
