Gold Weakens as Dollar and Oil Surge
Gold prices fell on Thursday (April 23), pressured by a stronger US dollar amid a surge in oil prices that has reignited concerns about energy-driven inflation. Spot gold weakened 0.2% to US$4,730.15 per ounce, while gold futures fell 0.1% to US$4,747.16 at 9:57 a.m. ET.
Market sentiment remains fragile due to uncertainty over the direction of the US-Iran conflict and the lack of progress in further talks, despite President Donald Trump extending the ceasefire indefinitely this week. Iran and the US have both shown little willingness to return to negotiations: Tehran demands the lifting of the blockade before talks, while Washington demands the full opening of the Strait of Hormuz.
Meanwhile, the blockage in the Strait of Hormuz keeps energy risk premiums high. Oil prices have resurfaced to US$103 per barrel this week, amid concerns about supply disruptions in the narrow waterway through which about a fifth of the world's oil passes, increasing the risk of an "energy shock" that could accelerate price pressures.
The oil rally has reignited concerns that global central banks could consider tightening if inflation rises again, a situation that is typically less supportive of non-yielding assets like gold. At the same time, a stronger dollar makes gold more expensive for buyers outside the US; the greenback is also on track for its first weekly gain in a month as investors seek relative safety amid the still-bleak outlook for conflict.
Beyond gold, pressure spread to other precious metals. Spot silver fell 4.3% to US$74.3705 per ounce and spot platinum weakened 3.5% to US$2,005.92, reflecting a combination of a stronger dollar and market sensitivity to the path of inflation and interest rates, which are again determined by energy and geopolitical dynamics. (gn)*
Source: Newsmaker.id
