Gold Holds Firm Ahead of US-Iran Interim Deal
Gold prices held firm as the US and Iran prepared to sign an interim peace agreement that could ease global inflation pressure from the energy market. Investors viewed the agreement as a potential step toward stabilizing supply after the war drove energy prices higher and complicated the outlook for monetary policy.
Bullion traded near $4,335 an ounce after gaining more than 6% over the previous four sessions. Emerging financial details of the US-Iran agreement suggest Iran may be allowed to sell oil immediately and gradually regain access to frozen assets.
US President Donald Trump said the Strait of Hormuz could fully reopen by Friday. Still, some European allies remain cautious over lingering risks, particularly around maritime security and the technical implementation of the agreement.
The reopening of Hormuz is important for gold because the waterway is closely tied to global energy supply. If energy flows normalize, oil-price pressure could ease, reducing inflation concerns and limiting the need for central banks to keep interest rates higher for longer.
This transmission is critical for gold. As a non-yielding asset, gold is sensitive to changes in real-rate expectations and bond yields. When energy-driven inflation pressure eases and yields move lower, the opportunity cost of holding gold tends to decline.
Market attention is now shifting to the Federal Reserve’s first policy decision under new Chair Kevin Warsh. Investors are waiting for signals on how the Fed will assess inflation risks after energy pressure begins to moderate. Current market expectations point to rates being left unchanged.
Standard Chartered analysts said gold’s strengthening correlation with real yields suggests the market’s focus has shifted to the Fed meeting. They also noted that the prospective US-Iran pact could help gold find a price floor sooner, although volatility may persist after prices briefly moved below the 200-day moving average earlier this month.
As of 8:02 a.m. Singapore time, spot gold was steady at $4,332.46 an ounce. Silver was flat near $70 after rising 10% over the previous four sessions, while platinum and palladium were little changed. The Bloomberg Dollar Spot Index was marginally lower, offering additional support to precious metals.
Source : Newsmaker.id
