Gold Rises as Hopes for US-Iran Deal Ease Inflation Risks
Gold prices rose during Tuesday's trading (August 4) after positive comments regarding Middle East peace talks caused a sharp drop in oil prices. The decline in energy costs helped alleviate investor concerns about inflation and potential central bank interest rate hikes.
At 08:37 ET (12:37 GMT), spot gold rose 0.6% to US$4,080.63 per troy ounce, while gold futures climbed 1.2% to US$4,138.00 per troy ounce. Meanwhile, at the time of writing, gold was trading at US$4,063 per troy ounce.
Despite the gains, gold remains within its recent trading range of US$4,000–US$4,100. Market participants continue to monitor mixed signals from the United States and Iran regarding the reopening of the Strait of Hormuz, a vital waterway that impacts global energy supplies.
Sentiment toward gold improved after US Treasury Secretary Scott Bessent stated that the US and Iran were nearing a deal to open the Strait of Hormuz. Qatar is also reportedly pushing for a short-term diplomatic solution focused on de-escalating the conflict and restoring the smooth flow of energy shipments.
In terms of market impact, lower oil prices could reduce inflationary pressure and dampen expectations for Federal Reserve rate hikes, thereby providing support for gold. However, XAU/USD price movement may remain limited until a formal US-Iran agreement is reached. Should negotiations fail and tensions in the Gulf escalate again, oil prices could rebound, potentially causing renewed volatility in gold prices. (asd)*
Source: Newsmaker.id
