Gold Holds Steady Above US$4,700 as US-Iran Peace Efforts Stall
Gold prices held steady at the start of the week as efforts to restart peace talks between the US and Iran stalled, while energy flows through the Strait of Hormuz remained stagnant two months after the conflict triggered global market turmoil and heightened inflation risks.
Bullion traded within a narrow range above US$4,700 per ounce on Monday (April 27), after Axios reported that Iran submitted a new proposal to the US to reopen Hormuz but postpone negotiations on its nuclear program. Over the weekend, US President Donald Trump canceled a planned trip by his top envoys to Pakistan, while Tehran asserted it would not negotiate as long as it remained under threat.
The market is also monitoring oil prices, which strengthened as Hormuz was deemed "virtually impassable" due to the blockade by both sides. This energy supply shock raises inflation risks and increases the likelihood of central banks holding interest rates longer or even raising them, a factor that fundamentally hinders non-yielding gold.
In this context, market participants tend to hold aggressive positions. Pepperstone believes that without a more "sustainable" opening or a credible path to a peace agreement, gold's potential upside risks being temporary, with prices likely to remain rangebound. (asd)*
Source: Newsmaker.id
