Gold Prices Hold Steady as Dollar Weakens Following Trump's Decision to Halt Iran Strike

Global Gold Markets Steady as Dollar Weakens and Oil Prices Fall

The global gold market remained steady on Tuesday as the dollar weakened and crude oil prices fell, following a pause in a planned attack against Iran by U.S. President Donald Trump. This easing of concerns about inflation and prolonged high interest rates has had a positive impact on the gold market.

Gold Prices Remain Steady

Spot gold held steady at $4,565.40 per ounce as of 0103 GMT, after hitting its lowest level since March 30 in the previous session. U.S. gold futures for June delivery gained 0.2% to $4,567.90. The dollar's decline has made greenback-priced bullion more affordable for holders of other currencies.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Market Reaction to U.S.-Iran Tensions

U.S. President Donald Trump's decision to pause a planned attack against Iran has led to a decrease in oil prices, with crude oil prices falling more than 2% in early Asian trade on hopes of negotiations to end the war in the Middle East. Elevated crude oil prices can stoke inflation, and while gold is considered a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal.

Central Bank Appointments and Gold Reserves

Kevin Warsh will be sworn in as U.S. Federal Reserve chief on Friday by President Trump, putting the financier at the helm of the central bank as it grapples with intensifying inflation that may make it hard to push through the interest-rate cuts Trump desires. In another development, Ghana has asked large-scale gold miners to sell 30% of annual output to the central bank as part of a revamped reserve-building drive, up from 20%.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Other Precious Metals

Spot silver fell 0.3% to $77.58 per ounce, platinum lost 0.2% to $1,976.15, and palladium dropped 0.6% to $1,409.75.

Comparison of Precious Metals Prices