Trump Predicts Iran War Will End, Gold Holds Gains
Gold prices continued their gains for a third consecutive day after US President Donald Trump stated that he predicted the war with Iran would end in two to three weeks. In early trading on Wednesday (April 1), gold was trading near $4,680 per ounce, after a 3.5% surge in the previous session.
Trump stated that the US had achieved most of its military objectives and would leave the resolution of the Strait of Hormuz issue to other countries. Meanwhile, Iranian media quoted President Masoud Pezeshkian as stating that the Islamic Republic was ready to end the war if its demands were met.
Despite rebounding in recent days, gold prices still fell nearly 12% in March, making it their worst monthly performance since October 2008. The conflict in the Middle East, now in its fifth week, has roiled global markets, disrupted energy supplies, and sparked concerns about a surge in inflation coupled with weakening economic growth.
Focus on Fed Policy
Traders are also analyzing comments from the Federal Reserve for clues regarding the central bank's interest rate policy. The bond market is now more focused on the impact of the war on economic growth after Fed Chair Jerome Powell stated that long-term inflation expectations remain stable. According to Yuxuan Tang, Head of FX and Interest Rate Strategy for Asia at JPMorgan Private Bank, "Gold's appeal as a safe haven tends to resurface when the narrative shifts from inflation to growth risks."
Gold Prices Steady at $4,679, Other Precious Metals Also Rising
Spot gold prices rose 0.3% to $4,679.93 per ounce at 7:00 a.m. Singapore time. Silver also rose 0.1% to $75.26, while platinum and palladium also strengthened. The Bloomberg Dollar Index, a gauge of the US currency, was stable after falling 0.6% the previous session.
Source: Newsmaker.id
