Peace Uncertain, Gold Stuck!
Gold prices moved in a narrow range, trading around $4,537 per ounce, virtually unchanged from the previous week. Investors continued to monitor developments in the ceasefire talks between the US and Iran, which were sending mixed signals.
According to the Iranian Students News Agency, Tehran responded to a document submitted by the US, which was said to have narrowed differences. However, a Reuters report stated that Iran's Supreme Leader, Mojtaba Khamenei, directed that near-weapons-grade uranium not be shipped abroad, triggering a temporary rise in oil prices.
President Donald Trump's comments opposing Iran and Oman's plan to build a permanent highway in Hormuz added to the uncertainty. This combination of conflicting statements makes it unclear whether the two sides are getting closer to a deal.
For gold traders, this situation reinforces concerns that the Fed and other central banks may need to raise interest rates for longer to curb inflation driven by rising energy prices. Gold typically performs well in low interest rates because it doesn't pay interest.
The impact of this impasse is causing gold and other precious metals to lose their appeal, said TD Securities strategist Ryan McKay. In the latest scenario, Commodity Trading Advisors (CTAs) are expected to reduce nearly their entire net gold position if prices fall to $4,350 per ounce.
Since the initial conflict, gold has traded in a narrow range after a sharp decline, reflecting the tension between expectations of interest rate hikes and the outlook for high inflation and low growth. Other precious metals such as silver, platinum, and palladium have remained relatively stable, while the Bloomberg Dollar Spot Index has also moved flat. (asd)*
Source: Newsmaker.id
