Gold Awaits New Direction
Gold prices held steady after recording a second weekly decline, amid market attention on developments in the United States-Iran peace talks and President Donald Trump's plan to begin guiding ships through the Strait of Hormuz.
Gold bullion hovered around US$4,620 per ounce. Trump said the US would begin assisting ships not involved in the Iran conflict to exit through the Strait of Hormuz starting Monday. He also mentioned positive discussions with Tehran.
However, market sentiment remains uncertain. Previously, Trump signaled that Iran's latest peace proposal might not be enough to satisfy Washington's demands. The conflict continues to keep energy prices high and dampen hopes for central bank interest rate cuts.
This presents a challenge for gold, as it offers no yield. Since the war began in late February, gold prices have fallen by about 12%. However, the weakening US dollar still provides some room for gold to hold its ground.
Looking ahead, traders will be watching the US Treasury Department's borrowing plan, speeches by several Fed officials, and the monthly US employment data. This data could provide new clues regarding the direction of interest rates, the US fiscal deficit, and the prospects for future gold movements. (asd)*
Source: Newsmaker.id
