Gold Steady, But Hormuz Risks Remain
Gold prices continued their two-day decline but held steady on Wednesday (April 22nd) after US President Donald Trump extended a ceasefire with Iran despite the failure of a new round of peace talks. Bullion traded around US$4,720/oz at the start of the Asian session, after falling more than 2% the previous day.
Trump said the US would refrain from further attacks until Iran presents a new proposal and the discussions are “resolved, one way or another.” Meanwhile, the Strait of Hormuz remains closed to commercial shipping, with Iran stating it will not reopen the waterway as long as the US maintains a blockade on shipping in and out of Iranian territory. This situation has kept oil prices subdued, reinforcing the energy inflation channel, which tends to dampen interest in gold by increasing the likelihood of higher interest rates remaining longer.
Market-wise, the strengthening dollar in the previous session also added pressure on greenback-priced gold. Analysts believe gold is currently trending within a narrow range because the market has already priced in the current level of geopolitical risk, and requires a new trigger—a clear escalation or decisive macroeconomic change—to prompt a re-rating. Monetary policy uncertainty looms large after Fed Chair nominee Kevin Warsh emphasized independence and called for a new framework to address persistent inflation, reinforcing the perception that policy will tend to be prudent.
At 7:08 a.m. Singapore time, spot gold edged up 0.1% to US$4,723.70/oz. Silver rose 0.3% to US$76.96/oz, while platinum and palladium remained relatively stable. The Bloomberg Dollar Spot Index fell 0.1%. (Arl)*
Source: Newsmaker.id
