Gold Trims Losses After Trump Extends Deadline for Iran War Talks
Gold pared some of its recent losses after U.S. President Donald Trump again pushed back the deadline for securing a deal with Iran to end the war in the Middle East.
Bullion traded near $4,400 an ounce in early Asia after sliding almost 3% in the previous session as doubts grew over the prospects for a ceasefire. Trump pledged to refrain from attacking Iranian energy sites for an additional 10 days, offering a brief respite to markets rattled by nearly a month of conflict. Oil prices also eased, helping reduce immediate inflation concerns.
Since the war began nearly a month ago, gold has fallen close to 17%, moving broadly in line with equities and inversely with crude oil. Spiking energy prices have raised inflation risks and pushed investors to price in a higher-for-longer rate backdrop—or even the possibility of further tightening—both of which are headwinds for non-yielding bullion.
Additional downside pressure has come from central-bank flows. Turkey’s central bank reportedly sold and swapped about 60 tons of gold—worth more than $8 billion—during the first two weeks of the war, marking a sharp drawdown in reserves, according to people familiar with the matter. Elevated central-bank buying had been a key pillar supporting gold’s multi-year rally.
In the latest update, spot gold rose 0.8% to $4,411.56 an ounce as of 6:43 a.m. Singapore time. Silver gained 1.4% to $69.01, while platinum and palladium also advanced. The Bloomberg Dollar Spot Index slipped 0.1% after finishing the prior session up 0.4%.
Source : Newsmaker.id
