Gold Holds Gains After Reports of US Negotiations to End the Iran War
Gold steadied after snapping a nine-session losing streak, as investors weighed reports that the United States is pursuing a diplomatic path to end the war with Iran—even as Washington continues to send additional troops to the Middle East.
Bullion traded near $4,480 an ounce in early dealings after rising about 1.6% in the previous session. U.S. President Donald Trump signaled that Iran had offered a “present” as a gesture of goodwill in negotiations, saying it was tied to energy flows through the Strait of Hormuz. The U.S. and regional mediators are also discussing the possibility of holding high-level peace talks in the near term.
On the ground, however, there has been no clear letup in hostilities. Iran has kept a tight grip on Hormuz while Israel continues strikes on Iranian targets. The Trump administration ordered the Army’s 82nd Airborne Division to deploy roughly 2,000 soldiers to the Middle East, adding to around 5,000 troops expected to begin arriving in the coming days—highlighting that military options remain in play alongside diplomacy.
Macro headwinds remain a key constraint. Elevated energy prices stemming from the conflict have raised inflation risks and led investors to price in a higher-rate environment, which typically weighs on non-yielding precious metals such as gold. Weakness in global stocks and bonds has also forced some investors to liquidate gold positions to raise cash, amplifying bullion’s losses since the war began more than three weeks ago.
There were also reports that some central banks may be selling gold to defend their currencies. Turkey’s central bank is said to be preparing an expanded toolkit to support the lira against war-related volatility, potentially including tapping its substantial bullion reserves. The bank has reportedly discussed possible gold-for-foreign-currency swap transactions in the London market, according to people familiar with the matter.
Central-bank accumulation of bullion since 2022 was a major driver of gold’s multi-year bull run, although the pace of purchases had already begun to slow heading into this year.
In the latest update, spot gold edged up 1.7% to $4,535.50 as of 7:45 a.m. Singapore time. Silver rose 0.6% to $71.66 after closing up 3% earlier. Platinum and palladium also gained, while the Bloomberg Dollar Spot Index fell 0.2%.
Source : Newsmaker.id
