Gold Holds Above $4,000 as Markets Watch US-Iran Talks
Gold prices remained steady above the $4,000 per ounce level as traders monitored peace talks between the United States and Iran while assessing the latest US economic data for clues on the Federal Reserve’s next interest-rate move.
Spot gold was little changed at around $4,006.73 per ounce during morning trade in Singapore. Over the past two sessions, bullion had lost nearly 2% as markets remained concerned that the Fed could maintain a hawkish stance if inflation fails to ease convincingly.
Two envoys of US President Donald Trump arrived in Doha as part of ongoing negotiations with Iran. However, mediator Qatar played down expectations for a major breakthrough, saying US officials were not scheduled to meet directly with their Iranian counterparts. This kept investors cautious about the prospect of a more permanent peace agreement.
Tensions also remain high around the Strait of Hormuz. Iran reiterated its determination to control vessel movements through the strategic waterway. Before the war, around one-fifth of the world’s oil and liquefied natural gas flowed through the strait, making any disruption a potential threat to energy prices and the global inflation outlook.
Since the Iran conflict began in late February, gold has lost around 24%. The decline pushed bullion below several key technical levels, including the 200-day moving average, which is widely used to gauge long-term momentum.
Although oil prices have retreated after surging earlier in the conflict, traders have increased bets that the Fed may still raise interest rates this year to fight inflation. Higher borrowing costs remain a headwind for gold because the precious metal does not offer yield.
The latest US economic data also pointed to resilience in the American economy. Job openings were little changed in May, suggesting that labor demand remains stable alongside a recent pickup in payroll growth. This gives the Fed more room to keep rates on hold while it evaluates the path of inflation.
Among other metals, silver slipped 0.2% to $58.46 per ounce. Platinum was flat, while palladium edged lower. The Bloomberg Dollar Spot Index rose 0.1%, adding pressure on gold as a stronger dollar makes the metal more expensive for overseas buyers.
Looking ahead, gold’s direction will depend on three key factors: progress in US-Iran talks, the movement of oil prices, and expectations for Fed policy. If gold holds above $4,000 and breaks through the $4,100 area, a short-term recovery could open up. However, if the dollar strengthens further and rate-hike expectations rise again, gold may face renewed downside pressure.
Source: Newsmaker.id
