Gold Rises, Dollar Falls After Trump Claims Progress on Iran Deal
Gold prices continued their rise and traded around $4,590 per ounce on Wednesday, helped by a weaker dollar after US President Donald Trump said there had been “major progress” toward a final agreement with Iran. The dollar index fell 0.2%, making gold cheaper for some global buyers.
Trump said he would temporarily halt US-led efforts to help neutral ships exit the Strait of Hormuz to see if a deal can be finalized. From Washington, Defense Secretary Pete Hegseth said the ceasefire that began less than a month ago was still in effect, while Secretary of State Marco Rubio said offensive operations had ended as the US shifted to protecting shipping in the strait.
From Tehran, Iranian Foreign Minister Abbas Araghchi stated that talks were “making progress.” However, tensions have not completely subsided, with reports of a cargo ship being hit by an unidentified projectile a day after a clash involving ships in the Strait of Hormuz, indicating the risk of an incident remains despite the strengthening rhetoric of de-escalation.
On the macro front, gold continues to face adverse forces. The path to a deal reopening Hormuz remains unclear, while inflation concerns are fueling expectations of tighter monetary policy, which typically weighs on gold as a non-yielding asset. The bond market is said to be increasing bets that the next central bank policy move could be an interest rate hike rather than a rate cut.
The next focus is on the US employment report, which could confirm whether labor market conditions are stable enough to allow inflation risks to remain a key investor concern. In that context, gold is said to have fallen more than 12% since the war began in late February, so its short-term range remains sensitive to the combination of the dollar, interest rates, and geopolitical headlines.
According to Nicky Shiels of MKS PAMP, gold enters the summer with a "paradoxical" positioning: funds parked in gold remain high, but contract and ounce positioning is relatively low. He believes the medium-term bullish narrative remains intact, but the path to new highs in the short term depends on whether institutional flows join in. At 8:18 a.m. in Singapore, spot gold was recorded as having risen 0.8% to $4,593.11, while silver rose 1.3% to $73.79, and platinum and palladium also strengthened. (gn)*
Source: Newsmaker.id
