Gold Advances as Traders Weigh Pakistan Comments and Trump Deadline
Gold rose as investors assessed fresh developments in the Middle East war ahead of President Donald Trump’s deadline for Iran to agree to a ceasefire deal.
Pakistan said diplomacy toward a peaceful settlement is progressing steadily, while urging Trump to extend the deadline by two weeks. The comments helped push the U.S. dollar and Treasury yields lower, lifting bullion by more than 1%.
Pakistan, which has helped facilitate peace talks, also asked Iran to “open the Strait of Hormuz for a corresponding period of two weeks as a goodwill gesture,” Prime Minister Shehbaz Sharif said in a social media post.
Early Tuesday, the U.S. struck military targets across Iran’s Kharg Island as Trump pressed Tehran to reach an agreement before his 8 p.m. New York-time deadline, warning that “a whole civilization will die tonight” if it does not. Trump also left open the possibility of a deal, saying new Iranian leaders with “different, smarter, and less radicalized minds” could reach an agreement. “We will find out tonight, one of the most important moments in the long and complex history of the world,” he added.
Now in its sixth week, the war has increased the likelihood that central banks delay rate cuts — or even consider hikes — as higher energy prices feed inflation risks. Bond traders expect the Federal Reserve to keep rates steady through the rest of the year.
Gold has fallen about 12% since the conflict began in late February, with its traditional haven appeal also blunted at times by investors’ need to liquidate positions to cover losses elsewhere. Still, accelerated gold purchases by China have supported market confidence, even as some other central banks have turned to selling. In March, Turkey’s central bank sold and swapped about 60 tons — worth more than $8 billion — to defend the lira.
As prices have declined, there are also signs dip-buyers are gradually rebuilding exposure. Holdings in gold-backed exchange-traded funds rose last week for the first time since the war began, according to a Bloomberg calculation.
Spot gold gained 1% to $4,709.43 an ounce as of 4:03 p.m. in New York. Silver slipped 0.4% to $73.09, while platinum and palladium fell. The Bloomberg Dollar Spot Index was down 0.3%.
Source : Newsmaker.id
