Gold Rises as Middle East Peace Hopes Weigh on Dollar and Oil
Gold prices rose on Thursday, June 4, supported by growing hopes for peace efforts in the Middle East, which pushed the U.S. dollar and oil prices lower. Spot gold gained around 0.7% to the US$4,464 per troy ounce area, while U.S. gold futures also advanced to around US$4,491 per troy ounce.
The rise in gold came as markets saw signs of easing geopolitical risk, particularly after Israel and Lebanon agreed to implement a ceasefire. The development also weighed on oil prices, helping ease concerns over a potential inflation spike. For gold, lower inflation pressure and a weaker dollar created a supportive combination, making the precious metal more attractive to global investors.
However, gold’s rebound is not yet fully solid. Markets are still closely watching the direction of the U.S.–Iran conflict, the situation in the Strait of Hormuz, and signals from the Federal Reserve’s monetary policy. If oil prices surge again due to supply disruptions, inflation risks could return and strengthen expectations that interest rates may stay higher for longer. Such conditions could pressure gold again through a stronger U.S. dollar and higher bond yields.
In the short term, gold may continue to trade within a limited range. Key support is seen around US$4,425, while the nearest resistance levels are located between US$4,500 and US$4,560. If gold manages to stay above support and the dollar continues to weaken, further rebound potential remains open. However, if U.S. economic data, especially Nonfarm Payrolls, comes in stronger than expected, gold could face renewed correction risk.(mrv)
Source: Newsmaker.id
