Ahead of Trump's Prime-Time, Gold Continues to Strengthen
Gold prices continued their rally for a fourth day, as markets assessed the increasing likelihood of a de-escalation of the US-Iran war, potentially opening up room for monetary easing. Bullion briefly traded above US$4,790 per ounce at the start of the Asian session on Thursday (April 2), after rising nearly 2% in the previous session.
Investors' focus was on President Donald Trump's rare prime-time address at 9:00 p.m. Eastern Time, coming after more than a month of conflict. A White House official said Trump was expected to reaffirm the two- to three-week target for winding down military operations. However, market participants were still seeking clarity amid Washington's fluctuating messaging in recent days, ranging from threats of further attacks to signals of an imminent resolution. Iran has also set several conditions for ending the fighting, including control of the Strait of Hormuz, a waterway that before the war carried about a fifth of global oil and LNG trade.
Gold has risen more than 6% this week, its strongest pace in 10 weeks, amid growing bets that the Federal Reserve may need to cut interest rates to support the economy if the risk of a slowdown increases, which typically supports non-yielding assets like precious metals. Meanwhile, the Bloomberg Dollar Spot Index fell 0.1% after closing down 0.2% in the previous session, contributing to a boost for dollar-denominated commodities. Spot gold rose 0.6% to US$4,788.13 per ounce (7:14 a.m. Singapore time), while silver gained 0.8% to US$75.65. The market is also preparing for a trading break as markets will be closed on Friday.
Source: Newsmaker.id
