Gold Trims Gains After Iran Says Ceasefire Deal With U.S. Has Been Violated
Gold pared earlier gains after Iran’s parliament speaker said a temporary ceasefire agreement with the United States has been violated.
Bullion was up 0.1% after earlier rising as much as 3.2% to above $4,800 an ounce. Mohammad-Bagher Ghalibaf said three clauses of the ceasefire proposal have been breached so far. U.S. Treasury yields erased earlier losses and the dollar pared declines, weighing on gold because it pays no interest and is priced in the greenback.
A “bilateral ceasefire or negotiations is unreasonable,” Ghalibaf said in a statement posted on X. The “workable basis on which to negotiate” has been “openly and clearly violated,” he added, even before talks began.
Earlier in the session, gold climbed alongside global equities as risk appetite rebounded sharply after a temporary two-week truce between the U.S. and Iran eased fears of a broader global economic shock. Oil slid below $100 a barrel and the dollar weakened, supporting bullion. The drop in crude also reduced concerns over an energy crunch that could reignite inflation, reviving bets the Federal Reserve may cut interest rates this year. Lower rates are typically supportive for gold.
Since the Middle East war began, gold has largely traded in tandem with stocks, with its traditional haven appeal dulled at times by investors’ need to liquidate positions to cover losses elsewhere. For the rally to hold, markets are looking for confirmation that the ceasefire will last and that energy flows through the Strait of Hormuz normalize.
“Gold’s push above $4,800 reflects a recalibration of risk, rather than a full regime shift,” said Ahmad Assiri, a strategist at Pepperstone Group Ltd. “The move higher suggests markets are now pricing in a lower probability of prolonged disruption, while still retaining a meaningful discount versus the pre-Iran setup.”
Gold is down about 10% since the war began in late February. A moderate recovery in recent days has been driven by ceasefire hopes and expectations that slower global growth could counter the case for stable or higher borrowing costs.
“In the near term, gold remains highly sensitive to political developments,” Assiri said. “The current ceasefire provides a window of relief, but it is conditional and fragile. Any sign of breakdown, particularly around the Strait of Hormuz, would likely reintroduce volatility” and downside risk.
Spot gold was up 0.002% at $4,706.41 an ounce as of 2:56 p.m. in New York. Silver gained 0.99%, while platinum and palladium rose. The Bloomberg Dollar Spot Index fell 0.6%.
Source : Newsmaker.id
