Gold Hits 3-Week Low!
Gold prices fell to a three-week low on Tuesday (April 28), as the US dollar strengthened and oil prices rose amid market focus on a series of central bank interest rate decisions this week.
At 9:07 a.m. ET (13:07 GMT), spot gold fell 2.2% to US$4,577.66 per ounce, while gold futures fell 2.2% to US$4,588.69 per ounce.
The strengthening dollar, as reflected in the dollar index against a basket of major currencies, pressured bullion by making gold more expensive for foreign buyers. The dollar held above pre-war levels, as market participants viewed the greenback as a relative safe haven amid geopolitical tensions.
Meanwhile, rising oil prices also weighed on gold sentiment after media reports suggested US President Donald Trump was dissatisfied with Iran's latest proposal to end the two-month conflict and reopen the Strait of Hormuz. Tehran has reportedly proposed postponing negotiations on its nuclear program, while the impasse has kept the Strait of Hormuz virtually closed to shipping and added upward pressure on oil prices.
The oil surge has rekindled inflation concerns, which could prompt central banks to consider tighter interest rate policies. This transmission channel has strengthened support for the dollar and could add pressure on gold, with the market now monitoring the direction of central bank decisions this week as well as the latest developments in geopolitical risks and energy price movements. (asd)*
Source: Newsmaker.id
