Gold News Ahead of the Week's Close
Gold closed the week on a downward trend, influenced by uncertainty surrounding the progress of US-Iran peace talks aimed at ending the conflict that has rocked global markets. Bullion hovered around $4,450 per ounce on Friday, heading for a weekly decline of around 1.6%.
The conflict, now entering its fourth month, has disrupted energy flows through the Strait of Hormuz, pushing up oil prices and raising concerns about global inflation. This situation increases the likelihood of central banks maintaining or raising interest rates, which puts pressure on gold as a non-yielding asset.
Uncertainty regarding the resolution of the Hormuz standoff increases the risk of energy disruptions, which analyst Nicholas Frappell believes will lead to tighter monetary policy, putting additional pressure on gold. Technically, gold prices are below key levels on the daily and 4-hour charts, indicating a short-term negative trend.
Since the outbreak of the conflict in late February, gold prices have fallen sharply and have been moving within a narrow range in recent weeks. On Friday morning in London, spot gold fell 0.3% to $4,462.05 per ounce, while silver fell 1.7% to $72.61 per ounce. Platinum also weakened, while palladium remained relatively stable.
The Bloomberg Dollar Spot Index weakened slightly by 0.1%, indicating the dollar's relative stability amid geopolitical volatility. Dollar stability and the interest rate outlook remain key factors for precious metals' near-term movements.
Federal Reserve Bank of San Francisco President Mary Daly emphasized that there is high uncertainty in the US economy, so the Fed is prepared to respond to interest rate direction according to market conditions. This statement adds an element of uncertainty to gold, as investors weigh the combination of geopolitical risks and monetary policy. (asd)*
Source: Newsmaker.id
