Gold Trims Gains as Traders Gauge Iran Truce Progres
Gold pared earlier gains as investors weighed progress toward a potential U.S.–Iran deal, even as the strategically important Strait of Hormuz remains effectively closed. Bullion surrendered most of its early advance after Iran’s semi-official Students’ News Agency reported that Iran’s planned Hormuz toll would be paid via Iranian banks, adding another layer of uncertainty to the Middle East outlook.
Higher bond yields also pressured gold, as the metal offers no interest income. Meanwhile, benchmark U.S. oil futures held above $94 a barrel and equities pulled back from record highs.
U.S. President Donald Trump said prospects for a deal with Iran are “looking very good” as the two sides discuss extending a ceasefire that is set to expire next week. “It’s looking very good that we’re going to make a deal with Iran, and it’s going to be a good deal,” Trump told reporters at the White House, adding that talks between Washington and Tehran could resume this weekend.
Pakistan has stepped up efforts to ensure the ceasefire is extended, giving the sides more time to negotiate a durable peace agreement. Optimism has risen in recent days, with many equity markets reversing wartime losses and, in some cases, reaching record highs.
Still, gold may retain underlying support from volatility and geopolitical risk. ACG Metals Ltd. Chairman Artem Volynets said gold should benefit from market turbulence while Trump remains in office, and noted that geopolitical events could spur central-bank buying as some institutions shift away from the U.S. dollar.
On monetary policy, the swaps market continues to price the Federal Reserve holding rates steady this year, a view supported by comments from St. Louis Fed President Alberto Musalem and Cleveland Fed President Beth Hammack. Standard Chartered’s Suki Cooper said gold is “not yet out of the woods” given the fragile ceasefire and the market’s renewed focus on real yields, adding that the policy response will be key amid competing risks of inflation and slower growth.
Gold is down about 9% since the war began, as a liquidity squeeze in the early weeks of fighting prompted investors to sell holdings to cover losses elsewhere. However, signs of renewed demand have emerged: bullion-backed exchange-traded funds have added around 25 tons so far this month after cutting about 94 tons in March, according to a Bloomberg tally.
Spot gold was little changed at $4,791.07 an ounce at 2:19 p.m. in New York. Silver, platinum and palladium slipped, while the Bloomberg Dollar Spot Index rose 0.1%.
Source : Newsmaker.id
