Gold Prices Hold Steady Amid Speculation Over Iran War Ceasefire Talks
Gold Steadies Amid Iran Tensions and Oil Price Volatility
Gold prices remained relatively stable on Friday, having risen 2.5% over the previous three sessions. The precious metal was trading near $4,765 an ounce in early trading, as investors continued to monitor the ongoing situation in Iran. Despite the closure of the Strait of Hormuz, US President Donald Trump expressed optimism about a potential deal with Iran, with talks scheduled to take place in Islamabad on Saturday.
The meeting, led by Vice President JD Vance, aims to address key issues surrounding the war in Iran, amidst concerns over the fragile ceasefire in Lebanon. Trump's comments on charging fees in Hormuz and the Israeli strikes in Lebanon have added to the tensions, with oil prices rising for a second day. However, oil is on track for its biggest weekly loss since June, which may have a positive impact on gold prices.
US Economy and Inflation Risks
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The six-week war has raised inflationary risks, making it more likely that central banks will delay cutting interest rates or even hike them. This development is a headwind for non-yielding gold, which benefits when borrowing costs are lower. In the US, consumer spending barely rose in February, with a report from the Bureau of Economic Analysis showing a modest increase. A more updated picture of inflation is due later Friday with the March consumer price index report from the Bureau of Labor Statistics.
Commodity Markets
Spot gold was little changed at $4,766.17 an ounce at 6:21 a.m. Singapore time. Silver was steady at $75.35, with platinum and palladium also flat. The Bloomberg Dollar Spot Index ended the previous session down 0.2%.
| Commodity | Previous Session | Current Session |
|---|---|---|
| Gold (Spot) | $4,765.00 | $4,766.17 |
| Silver (Spot) | $75.30 | $75.35 |
| Platinum (Spot) | $1,065.00 | $1,065.00 |
| Palladium (Spot) | $2,550.00 | $2,550.00 |
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Note: The table above shows the comparison of commodity prices between the previous and current sessions.
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