Uproar! Gold Prices Soar, Trump Ready to End the War, Real or Fake?
Gold prices continued their rise for the second straight day, fueled by reports that US President Donald Trump is ready to end the war with Iran even if the Strait of Hormuz remains closed. The precious metal rose 2.20%, nearing $4,619 an ounce, after rising 0.4% in the previous session. This rise came after the Wall Street Journal reported that Trump told aides he was willing to end the US military campaign in Iran even if the Strait of Hormuz remains largely closed, raising hopes for an end to the conflict that has lasted more than a month.
Meanwhile, Federal Reserve Chairman Jerome Powell said that long-term inflation expectations in the US appear to be under control, although the surge in oil prices triggered by the war has driven up inflationary pressures and strengthened expectations of interest rate hikes. Powell added that the central bank's current policy is in a "good place for us to wait and see." This situation has attracted gold buyers who are capitalizing on the decline in precious metal prices following the US and Israeli attacks on Iran in late February.
Meanwhile, geopolitical tensions continue to rise. The White House has threatened to escalate attacks on Iran, including on critical civilian infrastructure. Meanwhile, Tehran has approved legislation imposing fees on ships passing through the Strait of Hormuz and urged Yemen's Houthi militants to prepare for a renewed campaign against shipping in the Red Sea. Iran also attacked a Kuwaiti oil tanker in Dubai, as reported by Kuwait Petroleum Corp. on Tuesday.
Concerns about the potential for a prolonged conflict and rising energy prices are growing, which could prompt central banks to raise interest rates to curb inflation. This is bad news for precious metals that don't produce yields like gold. These pressures, combined with a liquidity crunch in global financial markets, have put gold on track for a monthly decline of about 13%, which would be the biggest decline since the global financial crisis.
As of 9:23 a.m. Singapore time, spot gold prices rose 1.6% to $4,581 an ounce. Silver also jumped 3.6% to $72.59 an ounce. Platinum and palladium also recorded gains. The Bloomberg Dollar Spot Index remained virtually unchanged after closing the previous session up 0.3%.
Looking ahead, developments related to the Fed's interest rate policy and geopolitical tensions in the Middle East will remain key factors to watch. If geopolitical uncertainty persists, it could further impact the energy and precious metals markets, while investors will continue to monitor the Federal Reserve's interest rate policy. (asd)
Source: Newsmaker.id
