Gold Steadies as Investors Weigh Outlook for US-Iran Peace Talks
Gold held steady after a two-day rebound as traders digested conflicting signals from the United States and Iran over potential negotiations to end the war in the Middle East.
Bullion traded near $4,510 an ounce in early Asia, after gaining more than 2% over the previous two sessions. The White House has insisted that talks with Iran are taking place and said it has compiled a 15-point peace proposal, while Tehran has publicly rejected U.S. overtures and laid out its own conditions. Even as Washington pursues diplomacy, it has also ordered thousands of additional troops to the region, reviving market concerns about the risk of a ground operation.
Since the war began on Feb. 28, gold has fallen nearly 15%, moving largely in tandem with equities and inversely with crude oil. Spiking energy prices have lifted inflation risks and pushed investors to price in a scenario where central banks keep rates on hold for longer—or potentially hike them—creating a headwind for non-yielding bullion.
That said, the odds of a Federal Reserve rate hike could be tempered by the risk of an economic slowdown if the conflict drags on. Wall Street has begun trimming growth forecasts for the U.S. this year while raising projections for inflation and unemployment, nudging up recession risks.
In the latest update, spot gold was little changed at $4,505.86 an ounce as of 7:05 a.m. Singapore time. Silver slid 1% to $70.51, while platinum and palladium edged higher. The Bloomberg Dollar Spot Index was flat after ending the prior session up 0.2%.
Source : Newsmaker.id
