Gold Stays Under Pressure as Markets Weigh US–Iran Deal Odds and Rate Risks
Gold remained on the back foot on Wednesday as investors assessed the prospects of a US–Iran agreement against fresh Gulf tensions and lingering concerns that inflation could keep interest rates higher for longer. A risk-on tone that has pushed equities to new highs also capped safe-haven demand for bullion.
Spot gold (XAU/USD) was around $4,495 per troy ounce and spot silver (XAG/USD) around $75.41 per troy ounce.
TD Securities said hopes of a US–Iran deal have offered some support, but the backdrop remains fragile as inflation fears continue to hang over precious metals. The broader narrative is still shaped by energy-driven inflation risk and a higher-for-longer rates backdrop, which typically weighs on non-yielding assets like gold.
Officials have also flagged the inflation channel from higher energy prices, including Bank of Japan Governor Kazuo Ueda, who warned that rising oil could pose broader risks to Japan’s inflation outlook. Markets are now watching for clearer diplomatic signals on the US–Iran track and incoming inflation data for guidance on the next move in rates expectations.
Source : Newsmaker.id
