Gold Steps Up in Asia!
Gold prices rose in Asian trading on Wednesday (May 6), supported by a weakening US dollar and falling oil prices. Market sentiment improved after signs of de-escalation in the Middle East emerged, helping ease concerns about near-term inflationary pressures.
Spot gold rose 1.8% to US$4,650 per ounce, while US gold futures for June delivery rose 1.7% to US$4,647.31. This increase extended the nearly 1% gain in the previous session.
The main boost came from US President Donald Trump's statement that Washington would temporarily halt operations to restore commercial shipping through the Strait of Hormuz. Trump also signaled that a deal with Iran was close.
This move marked a shift toward diplomacy after tensions escalated earlier in the week. Previously, the "Project Freedom" initiative to secure sea lanes in the Strait of Hormuz prompted a military response from Iran and briefly pushed oil prices sharply higher.
The drop in oil prices following Trump's comments helped ease inflation expectations. This situation provides room for gold to strengthen, even though the geopolitical risk premium is starting to diminish. Meanwhile, the US dollar, which weakened 0.2% against major currencies, also made gold cheaper for holders of other currencies.
Other precious metals also strengthened, following gold's movement. Silver prices jumped 3% to US$75.08 per ounce, while platinum rose 1.7% to US$1,990.72 per ounce. Overall, the precious metals market was supported by a combination of a weaker dollar, easing oil prices, and hopes for a US-Iran deal. (asd)*
Source: Newsmaker.id
